Nokia (NYSE:NOK) expects the challenging market environment of 2023 to continue through the first half of 2024, particularly in the first quarter, the Finnish telecom company said on Thursday.
In fourth quarter, net sales fell 21% Y/Y in constant currency to €5.71B as macroeconomic uncertainty continued to pressure operator spending.
However, a significant improvement in order intake was observed in Q4, particularly in Network Infrastructure, indicating at least some improvement in the overall spending environment. This, combined with improvements in gross margin and continued cost discipline, enabled the company to deliver a strong comparable operating margin of 14.8% in the quarter.
Given the initial signs of stabilization amid improving order trends, the company sees a strong improvement in Network Infrastructure net sales growth in the second half of 2024, which is likely to drive solid growth for the full year despite a challenging first half.
Nokia’s (NOK) comparable earnings before interest and tax fell from €1.15B in the prior year quarter to €846M, but exceeded analyst expectations of €767.5M.
Looking ahead, the company expects full year 2024 comparable operating profit of between €2.3B to €2.9B and free cash flow conversion from comparable operating profit of between 30% and 60%.
Shares of Nokia (NOK) surged 7.9% premarket on Thursday
Source link
