D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investors are advised to look forward to Nokia (HE:NOKIA)’s forthcoming financial results, due in just 2 days, for further insight into the company’s guidance and potential performance in FY25. The results are expected to provide a clearer picture of Nokia’s ability to meet or surpass the cautious expectations set for the upcoming fiscal years. For investors seeking deeper analysis, InvestingPro offers exclusive access to detailed valuation metrics, financial health scores, and expert insights that can help inform investment decisions in the telecommunications sector.
Investors are advised to look forward to Nokia’s forthcoming financial results, due in just 2 days, for further insight into the company’s guidance and potential performance in FY25. The results are expected to provide a clearer picture of Nokia’s ability to meet or surpass the cautious expectations set for the upcoming fiscal years. For investors seeking deeper analysis, InvestingPro offers exclusive access to detailed valuation metrics, financial health scores, and expert insights that can help inform investment decisions in the telecommunications sector. Despite these positive drivers, the analyst anticipates that the fourth quarter may present difficulties and that the company’s FY25 guidance, which is set to be released with upcoming results, might reflect a cautious approach. This strategy would allow Nokia to potentially exceed expectations throughout FY25.
JPMorgan’s analysis suggests that while investors may prefer to wait for the company’s results before purchasing stock for FY25, the current consensus expectations for that fiscal year imply a constant currency revenue decline. The firm disagrees with this outlook, arguing that a decline is unlikely and thus supports a positive view on Nokia’s stock.
The analyst also noted that Nokia’s revenues from India are not expected to dilute margins, as the company’s Mobile Networks margin in the region is lower. This aspect, combined with the anticipated increase in spending from U.S. telcos and the data center market’s growth, forms the core of JPMorgan’s optimistic stance on Nokia.
Investors are advised to look forward to Nokia’s forthcoming financial results, due in just 2 days, for further insight into the company’s guidance and potential performance in FY25. The results are expected to provide a clearer picture of Nokia’s ability to meet or surpass the cautious expectations set for the upcoming fiscal years. For investors seeking deeper analysis, InvestingPro offers exclusive access to detailed valuation metrics, financial health scores, and expert insights that can help inform investment decisions in the telecommunications sector.
In other recent news, Nokia, the Finnish tech company, has made significant strides in its business operations. The company has entered into a multi-year patent license agreement with Samsung (KS:005930), allowing the South Korean tech giant to use Nokia’s video technologies in its televisions. In return, Nokia will receive royalty payments, although the specifics of these payments remain confidential. This agreement is separate from the existing 5G patent license agreement between the two companies.
In terms of financial analysis, JPMorgan has upgraded Nokia’s stock from Neutral to Overweight and increased the price target. The firm predicts a likely increase in telecommunications spending in 2025, driven by adjustments in the US telecom sector and new 5G investments in India. JPMorgan also highlighted Nokia’s potential growth in the enterprise market, particularly due to its recent expansion of partnership with Microsoft (NASDAQ:MSFT) Cloud.
In relation to earnings and revenue, Nokia reported mixed results for the third quarter of 2024. Despite growth in Fixed Networks and IP Networks, a decline in its Mobile Networks segment was noted. However, Nokia Technologies saw a 36% increase in sales, and the company reported significant gross margin improvement. The acquisition of Infinera (NASDAQ:INFN) is also progressing, with closure expected in the first half of 2025. These are some of the crucial recent developments for Nokia.
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