Nokia: cuts 2020 forecasts - stock thumped
(CercleFinance.com) - On Thursday Nokia unveiled a drop in Q3 revenues, warning that 2020 would be lower than expected and warned that its 2021 financial year would be "difficult".
"We have lost share at one large North American customer, see some margin pressure in that market, and believe we need to further increase R&D investments to ensure leadership in 5G," said Pekka Lundmark, Nokia's new CEO.
"In fact, we have decided that we will invest whatever it takes to win in 5G. Our customers are counting on us and we will be there for them," he said.
In its statement, Nokia said that it now expects 2020 EPS of around 0.23 euro, against a previous forecast of around 0.25 euro.
Despite announcing that it needs to better match its clients' needs, saying that i twill implement a new organisational model as from January 2021, the market was far from convinced, with the share diving over 15% in early trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
"We have lost share at one large North American customer, see some margin pressure in that market, and believe we need to further increase R&D investments to ensure leadership in 5G," said Pekka Lundmark, Nokia's new CEO.
"In fact, we have decided that we will invest whatever it takes to win in 5G. Our customers are counting on us and we will be there for them," he said.
In its statement, Nokia said that it now expects 2020 EPS of around 0.23 euro, against a previous forecast of around 0.25 euro.
Despite announcing that it needs to better match its clients' needs, saying that i twill implement a new organisational model as from January 2021, the market was far from convinced, with the share diving over 15% in early trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.