Nokia shares stoop on weaker-than-expected margin view

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The brand of telecommunications big Nokia in Espoo, Finland.


markku ulander/Agence France-Presse/Getty Photos

Shares of Nokia
NOKIA,
-16.73%

NOK,
-4.48%

slumped 17% in Helsinki, after the telecom gear maker lowered its 2020 steering and launched 2021 margin steering beneath market expectations.

Nokia mentioned its third-quarter revenue greater than doubled to €203 million, whereas gross sales fell 7% to €5.29 billion. On an adjusted foundation, Nokia’s earnings per share was regular at 5 eurocents.

Nokia lowered its 2020 adjusted earnings view to 23 cents from 25 cents, and its working margin view to 9% from 9.5%. It expects 2021 adjusted working margins between 7% and 10%, beneath consensus expectations of almost 11%.

Rival Samsung
005930,
-1.52%

in September gained a key 5G contract from Nokia buyer Verizon Communications
VZ,
-1.86%
.

” Now we have misplaced share at one giant North American buyer, see some margin stress in that market, and consider we have to additional enhance R&D [research and development] investments to make sure management in 5G,” mentioned Pekka Lundmark, who accomplished his first quarter as chief govt.

Nokia additionally introduced a brand new company construction.

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