Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  NASDAQ OMX HELSINKI LTD.  >  Nokia Oyj    NOKIA   FI0009000681

NOKIA OYJ

(NOKIA)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Nokia cuts profit forecast and revamps strategy, shares slump 13%

10/29/2020 | 01:35am EST

* Cuts 2020 profit, margin outlook

* Sees margin pressure in North America after contract loss

* Expects financial performance to stabilise in 2021 (Adds detail, shares, analyst comment)

STOCKHOLM/HELSINKI, Oct 29 (Reuters) - Telecom equipment maker Nokia cut its full-year profit and margin forecasts on Thursday, sending its shares tumbling 13% as the Finnish company's new chief executive overhauled its strategy to win the 5G race.

Announcing a new strategy under which the company will have four business groups, CEO Pekka Lundmark said Nokia would "do whatever it takes" to take the lead in 5G where it lags Swedish rival Ericsson and Chinese group Huawei.

Nokia lowered its full-year profit outlook range by 0.02 euros to a midpoint of 0.23 euros per share, having reported third-quarter results broadly in line with analysts' expectations.

"We expect to stabilise our financial performance in 2021 and deliver progressive improvement towards our long-term goal after that," Lundmark said in a statement.

The company also cut its 2020 operating margin forecast to 9% from 9.5% and for 2021 expects operating margin of 7-10%.

JP Morgan analysts said higher research and development spending was likely to drive the margins lower than the consensus expectations of 10.9% for 2021.

"Nokia is likely to find raising operating margins challenging due to its relatively low market share, Liberum analysts said in a note.

Ericsson last week reported quarterly core earnings above market estimates, helped by higher margins and China's 5G rollout, and said it was "more confident" in meeting its 2020 targets.

Unlike Ericsson, Nokia has not won any 5G radio contracts in the highly competitive Chinese market.

Nokia and Ericsson have been gaining more customers in Europe as more telecom operators start rolling out 5G networks and China's Huawei is increasingly shunned by several governments over security concerns.

Nokia, however, suffered a setback in the third quarter when it lost out to Samsung Electronics on a part of a contract to supply 5G equipment to Verizon.

"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," Lundmark said.

Its quarterly revenue also fell due to weakness in its services business.

Nokia said its July-September underlying earnings were flat year-on-year at 0.05 euros per share, meeting the 0.05 euros consensus in a Refinitiv poll. (Reporting by Supantha Mukherjee in Stockholm and Anne Kauranen in Helsinki; Editing by Aditya Soni, Keith Weir and Emelia Sithole-Matarise)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ERICSSON AB 1.35% 100.25 Delayed Quote.1.45%
FORTUM OYJ -0.47% 21.02 Delayed Quote.7.21%
NOKIA OYJ -0.03% 3.3495 Delayed Quote.6.39%
SAMSUNG ELECTRONICS CO., LTD. -1.90% 88000 End-of-day quote.8.64%
VERIZON COMMUNICATIONS INC. 0.60% 57.38 Delayed Quote.-2.33%
All news about NOKIA OYJ
01/14EUROPE : European stocks extend gains for third day, political woes hit Italy
RE
01/14NOKIA : Picked For US Federal 5G Cybersecurity Project
MT
01/14NOKIA : Google Cloud Team Up to Develop 5G Products for Communication Service Pr..
MT
01/14Nokia selected for U.S. Federal 5G Cybersecurity Project
GL
01/14Google Cloud, Nokia partner to accelerate cloud-native 5G readiness for commu..
GL
01/14NOKIA : Barclays reiterates its Neutral rating
MD
01/14Nokia supports T-Mobile 5G evolution with five-year expansion deal
GL
01/14MARKET CHATTER : Dixon Technologies Secures Contract to Manufacture Nokia Produc..
MT
01/14T-Mobile Strikes 5-Year Deals With Ericsson, Nokia To Expand 5G Network
DJ
01/14Nokia Shanghai Bell to deploy next-generation network for Airport Authority H..
GL
More news
Financials
Sales 2020 21 531 M 25 970 M 25 970 M
Net income 2020 647 M 780 M 780 M
Net cash 2020 1 959 M 2 362 M 2 362 M
P/E ratio 2020 28,6x
Yield 2020 0,17%
Capitalization 18 871 M 22 816 M 22 762 M
EV / Sales 2020 0,79x
EV / Sales 2021 0,78x
Nbr of Employees 94 250
Free-Float 93,3%
Chart NOKIA OYJ
Duration : Period :
Nokia Oyj Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends NOKIA OYJ
Short TermMid-TermLong Term
TrendsNeutralBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 3,66 €
Last Close Price 3,35 €
Spread / Highest target 55,1%
Spread / Average Target 9,23%
Spread / Lowest Target -37,9%
EPS Revisions
Managers and Directors
NameTitle
Pekka Ilmari Lundmark President & Chief Executive Officer
Sari Maritta Baldauf Chairman
Marco Wirén Chief Financial Officer
Marcus Weldon Chief Technology Officer
Kari Henrik Stadigh Vice Chairman
Sector and Competitors
1st jan.Capitalization (M$)
NOKIA OYJ6.39%22 816
CISCO SYSTEMS, INC.1.52%191 965
FOXCONN INDUSTRIAL INTERNET CO., LTD.11.40%46 765
ERICSSON AB1.45%39 721
MOTOROLA SOLUTIONS, INC.2.05%29 421
ARISTA NETWORKS, INC.9.12%23 990