Nokia falls 5 percent after missing third-quarter earnings guidance

Nokia Oyj shares fell after the company missed estimates for third-quarter earnings on delayed licensing deals.

Okia reported a 3.9% year-on-year increase in operating profit to 658 million euros ($644 million), the Finnish wireless network maker said in a statement on Thursday. According to a Bloomberg survey, the analysts’ average estimate of 702.6 million euros was missed. Shares fell as much as 5 percent in Helsinki trading.

Analysts at Jefferies said profit margins missed estimates due to delays in signing new patent and licensing deals with handset makers Vivo Communication Technology Co Ltd. and Guangdong Oppo Mobile Telecommunications Corp Ltd.

“We’re not just going to accept any deal that’s available,” Chief Executive Officer Pekka Lundmark said in an interview about the patent negotiations. “We believe that over the longer term, protecting the value of the patent portfolio is more important than rushing with timing.”

Revenue rose thanks to demand for mobile devices and network infrastructure, with good demand for 5G seen in key regions such as India. Nokia reiterated its growth forecast for the full year 2023.

According to Nokia, currency-adjusted sales in the third quarter increased by 6 percent to 6.24 billion euros. This compares to an analyst forecast of EUR 6.03 billion according to the average estimate of a Bloomberg survey.

Nokia fell 4.1 percent to €4.5525 per share as of 9:16 am Helsinki and is down 18 percent this year. The Espoo-based provider released the results on the same day as top rival Ericsson AB in Sweden, which also reported a profit loss.

https://www.independent.ie/business/world/nokia-falls-5pc-after-missing-third-quarter-profit-forecast-42081271.html Nokia falls 5 percent after missing third-quarter earnings guidance

Fry Electronics Team

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