- Nokia (NYSE:NOK) reiterated fiscal 2024 guidance and reported second-quarter profit results amid a challenging environment.
- Second-quarter non-GAAP earnings per share were €0.06.
- Revenues were €4.47B (-17.8% Y/Y).
- In the second quarter, comparable operating profit margin decreased 190 basis points year-on-year to 9.5%.
- Second quarter free cash flow was €0.4B and net cash balance was €5.5B. The buyback program is scheduled to accelerate.
- Appearance: Nokia’s full-year 2024 outlook remains unchanged. Nokia currently expects comparable operating profit to be between 2.3 billion euros and 2.9 billion euros, and free cash flow conversion generated from comparable operating profit to be between 30% and 60%.
- “Looking ahead, we believe the industry is stabilizing and, given order volumes in recent quarters, we expect net sales growth to accelerate materially in the second half. While dynamics are improving, the recovery in net sales is occurring sooner than we previously expected Later.
| Nokia Business Group Assumptions (Full Year 2024) | ||
| Net sales growth (constant currency) | Operating profit margin | |
| network infrastructure | -2% to +3% (updated) | 11.5% to 14.5% |
| mobile network | -19% to -14% (updated) | 4.0% to 7.0% (updated) |
| Cloud and Internet Services | -5% to +0% (updated) | 6.0% to 9.0% |
