Nokia Earnings Preview

Nokia (NYSE:NOK) is set to give its latest quarterly earnings report on Thursday, 2024-10-17. Here's what investors need to know before the announcement.

Analysts estimate that Nokia will report an earnings per share (EPS) of $0.08.

Investors in Nokia are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

Last quarter the company beat EPS by $0.01, which was followed by a 0.83% increase in the share price the next day.

Here's a look at Nokia's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	0.050	0.06	0.15	0.090
EPS Actual	0.065	0.10	0.11	0.054
Price Change %	1.0%	1.0%	-0.0%	-2.0%

Performance of Nokia Shares

Shares of Nokia were trading at $4.41 as of October 15. Over the last 52-week period, shares are up 39.25%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Nokia

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Nokia.

Nokia has received a total of 1 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $6.5, the consensus suggests a potential 47.39% upside.

Analyzing Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Juniper Networks, F5 and Ciena, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Neutral trajectory for Juniper Networks, with an average 1-year price target of $40.0, implying a potential 807.03% upside.
• The consensus outlook from analysts is an Neutral trajectory for F5, with an average 1-year price target of $211.0, indicating a potential 4684.58% upside.
• Analysts currently favor an Neutral trajectory for Ciena, with an average 1-year price target of $63.79, suggesting a potential 1346.49% upside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for Juniper Networks, F5 and Ciena are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Ubiquiti	Buy	3.33%	$204.14M	171.67%
Juniper Networks	Neutral	-16.82%	$688.50M	0.76%
F5	Neutral	-1.02%	$559.07M	4.85%
Ciena	Neutral	-11.76%	$403.94M	0.49%

Key Takeaway:

Nokia ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Nokia is at the top among its peers.

Delving into Nokia's Background

Nokia provides telecom equipment and services that are used to build wireless and fixed-line networks. It operates in four segments. The mobile networks segment, which sells equipment and services to telecom carriers to power public wireless networks, is the largest, followed closely by network infrastructure. Network infrastructure focuses on fixed networks, including infrastructure, solutions, and components for IP networks, optical networks, and submarine networks. Cloud and network services is a nascent segment catering to enterprises with as-a-service platforms. Nokia also has a sizable research division and patent business, where it licenses technology used by handset providers, consumer electronics firms, and other firms making electronic and Internet of Things products.

Financial Milestones: Nokia's Journey

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Decline in Revenue: Over the 3 months period, Nokia faced challenges, resulting in a decline of approximately -17.87% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Nokia's net margin is impressive, surpassing industry averages. With a net margin of -3.27%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Nokia's ROE stands out, surpassing industry averages. With an impressive ROE of -0.69%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Nokia's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.37% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Nokia's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.22.

To track all earnings releases for Nokia visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.