Nokia Stock Dips Pre-Market After Q3 Earnings Disappoint – Retail Investors Remain Optimistic

Shares of Nokia Corp (NOK) declined as much as 5% in Thursday’s pre-market trading after the telecom giant reported tempered third-quarter earnings.

The Finnish company revealed it’s now tracking within the lower half of its full-year comparable operating profit guidance of $2.50 billion to $3.15 billion, a shift from earlier expectations of reaching the midpoint or just below it.

While Nokia did report a 9% rise in third-quarter (Q3) operating profits, its quarterly net sales fell by 8% to $4.7 billion, missing Wall Street estimates of $5.14 billion. Earnings per share came in at $0.07, below the estimated $0.08.

CEO Pekka Lundmark noted that order intake in Q3 fell short, emphasizing that the recovery in demand remains slow and continues to impact the company's outlook. He added that decline in sales was primarily driven by weakness in the India market.

Like its Nordic competitor Ericsson in Sweden, Nokia has faced challenges over the past two years as operators have scaled back investments in 5G and other telecommunications technologies due to economic uncertainty and rising financing costs.

Retail sentiment on Stocktwits has shown signs of improvement, shifting from ‘bearish’ to ‘bullish’(64/100). While some users are hyped about the profit beat, others believe that a change in management is required for Nokia to turn a corner.

Despite the recent tumble, Nokia’s shares have gained 24% in 2024 so far and 21% in the last 12 months.

($1 = €0.92)

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