Nokia reiterates FY guidance; reports strong Q3 network infrastructure & cloud and network services
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- Nokia (NOK +1.6%) beat Q3 revenue of €5.4B (+2.1% Y/Y) beats consensus by €10M.
- Strong sales growth in Network Infrastructure +6% Y/Y and Cloud & Network Services +12% Y/Y.
- Comparable gross margin of 40.8% (reported 40.7%), reflecting continued strong execution across the business.
- Strong growth in North America (+9% constant currency) despite headwinds
- Comparable gross margin expanded +340bps due to efficiency and improved cost competitiveness
- Operating margin of 11.7% (+250 bps Y/Y).
- Strong free cash flow generation of €0.7B.
- Company's gross margin is at ~40.3% vs. 34.8% last year.
- Non-GAAP EPS of €0.08 beats by €0.01; GAAP EPS of €0.06.
- FY Guidance: Net sales €21.7B-22.7B; Comparable operating margin 10 to 12%; Free cash flow- clearly positive; Comparable ROIC 17 to 21%.
- FY 2023: Net sales- grow faster than the market; Comparable operating margin 10 to 13%; Free cash flow- clearly positive; Comparable ROIC 15 to 20%.
- 2021 Outlook: Mobile Networks +5%; Network Infrastructure +5%; Cloud and Network Services +4%; Total addressable market +5%
- Dive deep in company presentation:
- Recently, T-2 Slovenia selected Nokia in a five-year 5G deal as the sole supplier.
- Contributor comments on the stock: '3 Reasons Nokia Will Outperform After Earnings'
- A comparative look at the company's price performance against its peers on a YTD basis.
- Previously (Oct. 28): Nokia EPS beats by €0.01, beats on revenue