The company missed on both revenue and net income, despite a robust increase in the latter. News from Nokia's (NOK -2.69%) corporate headquarters pushed the Finland-based company's share price down on Thursday. The once-mighty telecom published its third-quarter results, and for the most part investors weren't pleased with the numbers. Nokia stock closed the day more than 3% in the red, comparing unfavorably to the essentially flat performance of the benchmark S&P 500 index. A disappointing double miss Noki ...

Financial Data and Key Metrics Changes - The company reported a net sales decline of 7% in Q3 2024, primarily driven by Mobile Networks, but achieved a significant gross margin improvement of 490 basis points year-on-year [7][8][10] - Free cash flow was strong at over EUR 600 million for the quarter, resulting in a net cash balance of EUR 5.5 billion [6][14] - The operating margin was solid at 2.5%, supported by strong gross margins and cost control measures [7][8] Business Line Data and Key Metrics Changes - Fixed Networks grew by 9% and IP Networks by 6%, with significant improvements in gross margins across all business groups [5][9] - Mobile Networks sales declined by 17%, with a notable decrease in India due to elevated 5G deployment in the previous year [10] - Cloud and Network Services sales declined by 4%, but adjusted for divestitures, net sales would have been stable [11] - Nokia Technologies saw a 36% increase in net sales, driven by smartphone licensing agreements and growth in automotive and IoT sectors [12] Market Data and Key Metrics Changes - North America showed double-digit growth in all three business units of Network Infrastructure, while other regions experienced declines, except for Europe, which grew by 1% due to Nokia Technologies [13] - India experienced a 43% decline in net sales, but the company expects meaningful growth in the region next year [38] Company Strategy and Development Direction - The company is focusing on diversifying its business and expanding into high-growth non-CSP markets, particularly in data centers and private wireless [6][19] - The Infinera acquisition is expected to enhance scale in North America and exposure to webscale customers, with a target to close the deal in H1 2025 [6][20] - The company aims to lower the required net sales for double-digit operating margins in Mobile Networks from EUR 11.5 billion to EUR 9.5 billion by 2026 [18] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market is slowly recovering, challenges remain, particularly in Mobile Networks [4][15] - The company is optimistic about the recovery in Fixed Networks and IP Networks, with inventory issues largely resolved [15][16] - Management emphasized the importance of maintaining pricing discipline and executing strategic pillars during this period [16] Other Important Information - The company has achieved EUR 500 million in run-rate gross cost savings and is on track to meet its cost-saving targets [6][41] - The company plans to hold a Capital Markets Day in 2025 after the Infinera deal closes [26] Q&A Session Summary Question: Can you help us understand the gross margin improvement? - Management clarified that the gross margin improvement was due to product mix, regional mix, and product cost reductions, and not impacted by the reversal of trade receivable allowances [30] Question: What is the trajectory of order intake across different units? - Management noted positive momentum in orders and a book-to-bill ratio above one, particularly in Fixed and IP Networks, with North America showing strong growth [32] Question: Can you elaborate on the CoreWeave win and its implications? - Management highlighted that the CoreWeave contract is central to their strategy to diversify into data centers, which is expected to be a significant growth area [36] Question: How is the Indian market expected to perform next year? - Management expects meaningful growth in India next year, tracking towards a normalized run rate above 2022 levels [38] Question: What is the status of the Mobile Networks sales? - Management indicated that while new deals are promising, more are needed to meet sales goals, and they are focusing on non-CSP segments for growth [40] Question: Can you discuss the API strategy and its importance? - Management expressed satisfaction with their organic development of APIs and emphasized the need for cloud-native transformation to enable efficient automation [46] Question: What is the outlook for the AT&T 5G contract? - Management confirmed that AT&T volumes are expected to decrease significantly next year, following accelerated revenue recognition this year [65] Question: What is driving the CNS division's flat performance despite 5G Core momentum? - Management explained that legacy segments within CNS are declining, but strategic growth segments like 5G Core are performing well [67]

Nokia Corporation (NOK) , Windstream Wholesale and Colt Technology Services together achieved a significant milestone in global connectivity by completing the world's first trial of 800 Gigabit Ethernet (800GbE) service. This pioneering test connected London with Chicago over an impressive 8,500 km route that encompasses both subsea and terrestrial networks. How NOK's Solutions Helped Achieve This Feat? The trial utilized Colt Technology Services' state-of-the-art transatlantic subsea cables, integrated wit ...

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Nokia Corporation (NOK) recently unveiled significant enhancements to its Corteca software suite, marking a pivotal shift in home networking and application lifecycle management. With these updates, Corteca becomes the industry's first platform to fully embrace open standards and protocols, including prpl Life Cycle Management (LCM), the Open Container Initiative (OCI) and the TR-369 User Services Platform. How NOK's Launch Could be Beneficial to Operators? These enhancements will help operators benefit fro ...

Press Release Nokia and RACSA deploy first 5G network in Costa Rica Nokia deploys Costa Rica's first 5G standalone network with equipment from its industry-leading AirScale portfolio with Radiográfica Costarricense SA. The 5G network is set to revolutionize connectivity, fuelling digital transformation and supporting businesses and citizens. Unlocking 5G will empower industries, enhance public services including border control and citizen safety, and drive innovation across healthcare, education, and the br ...

Nokia Corporation (NOK) is set to report its third-quarter 2024 results on Oct. 17, before the opening bell. In the last reported quarter, it reported adjusted earnings of 6 cents per share. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The company is expected to witness a revenue contraction year over year, owing to demand softness in several business segments. Intensifying competition, macroeconomic headwinds, and growing geopolitical unrest are major headwinds. However, effort ...

Press Release Nokia and Furukawa Electric LatAm expand partnership in Brazil to reach data center market Security and automation designed for the AI era are focus of new phase of partnership, designed for data centers of all sizes in Brazil. Solutions immediately available for Brazilian market bring together Nokia's modern data center automation platform and Nokia DDoS attack detection and mitigation software. Existing partnership between the companies to commercialize advanced passive optical network (POL) ...

Press Release Nokia strengthens situational awareness and worker safety in industrial environments with expanded device portfolio New field routers increase the data transfer capacity using Nokia MX Boost. EX-protected tablet and a new EX-protected 5G PTT handheld by i.safe MOBILE keep connected workers safe in hazardous industries, such as oil and gas. 9 October 2024 Espoo, Finland – Nokia today announced new industrial devices to help enterprises increase worker safety, productivity and situational awaren ...

Press Release Nokia launches new industrial applications to improve worker safety and enhance operational efficiency Expands the number of Nokia-owned and best-in-class industry applications integrated on the MX Industrial Edge (MXIE) to drive efficiency, productivity and OT security. New applications help to improve worker safety and enable responsive video for machine remote control, leading to higher operational efficiency and strengthening OT environment security. 9 October 2024 Espoo, Finland – Nokia t ...