Nokia Stock ( NYSE:NOK )
Nokia ( NYSE:NOK ), formerly the dominant player in the mobile phone market but now focused on telecoms infrastructure, Nokia’s stock price fell after the firm announced lower-than-expected results this morning. In its fiscal third-quarter report, Nokia posted an operational profit of 658 million euros. In contrast, analysts had predicted it would earn 690.6 million euros ($676 million).
Nokia stock has fallen 7.8% as of 12:35 PM ET.
What’s the Reason?
The strong U.S. dollar helped boost Nokia stock euro-denominated statistics by 16% year-over-year in the third quarter, bringing total sales to 6.2 billion euros. Without currency fluctuations, sales growth would have been 6% lower.
The company’s operating profit margin dropped by 100 basis points to 8.3%. The gross profit margin on sales dropped by 60 basis points to 40.1%. As a result, the boost in operating profits from the increase in revenues was limited, increasing by only 3% year over year to 518 million euros. There was nonetheless an increase of 33% in net earnings per share (0.08 euros per share) or 25% in pro forma net profits (0.10 euros per share).
Cash flow from operations underperformed profits by 300 million euros.
What’s Next?
Moreover, it was just the first bad news.
Nokia stock has informed investors that its revenue for fiscal 2022 is expected to fall within a narrow range of 23.9 billion to 25.1 billion euros, which is in line with previous guidance but likely falls short of U.S. analyst expectations of $25.4 billion. The good news is that Nokia expects to increase its operating profit m...
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