(Bloomberg) – Nokia Oyj increased its earnings guidance for the full year after cutting costs and revising its products to catch up with rivals in the fifth-generation wireless network market.
The company expects diluted earnings per share of 0.25 euro cents, plus or minus 5 cents, compared to a previous forecast of 0.23 euro cents. Adjusted operating profit for the second quarter was 423 million euros, beating analyst average estimates of 289.8 million euros, according to Bloomberg. crawled classifications.
Key ideas
CEO Rajeev Suri’s latest results as CEO mark a low point for Nokia after it lost ground to competitors in 5G mobile networks and the coronavirus disrupted supply chains and reduced investment. “Nokia-level revenue declined in the quarter” largely due to Covid-19 and China declining, Suri said in the statement. “We expect that most sales lost in the quarter due to Covid-19 will change to future periods.” His fortune will improve as a new low-cost radio access base station brings him back into the game in 5G and main rival Huawei is ousted from key European markets by a boycott campaign led by the United States. That company’s difficulties may be one of the reasons Nokia may update its guidance. Previously, he had said that he expected to have a performance consistent with the market.
Market context
Nokia shares rose approximately 4% during the year through Thursday’s close. More analysts advise clients to buy stocks that recommend a hold or sell position.
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Suri’s replacement Pekka Lundmark takes over on August 1 and a strategy review is expected to begin. Suri’s biggest move was to buy from rival Alcatel-Lucent in 2016, a deal that gave Nokia a broader product portfolio, but one that required a complex integration process that analysts say distracted management just when the 5G race began. they decreased 11% from a year earlier to 5.09 billion euros ($ 6.05 billion), compared to an average analyst forecast of 5.31 billion euros. Nokia reported an operating margin of 9.5% plus or minus 1.5 percentage points, against a previous midpoint of 9.0% See the numbers here. Nokia cuts 1,200 French jobs in former Alcatel-Lucent business How Nokia’s Alcatel deal has returned to haunt its CEO
(Updates with CEO comments under Key Insights)
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