Nokia Registers 16% Net Sales Growth In Q3; Margins Shrink Due To Nokia Tech Decline

Nokia Corp NOK reported a third-quarter FY22 net sales growth of 16% year-on-year (6% in constant currency) to €6.24 billion.
Network Infrastructure sales grew 5% Y/Y in CC. Cloud and Network Services sales declined 3% Y/Y in CC, while Nokia Tech declined 19% Y/Y, affected by expired licenses.
Mobile Networks sales grew by 12% Y/Y in CC as supply chain constraints eased.
Margins: The gross margin contracted by 60 bps to 40.1%. Comparable margin contracted by 40 bps to 40.4%.
The operating margin declined by 100 bps to 8.3%, mainly due to the decline in Nokia Technologies. The comparable margin contracted by 120 bps to 10.5%.
EPS was €0.08, and comparable EPS was €0.10.
Nokia held €4.7 billion in cash and equivalents and generated €0.3 billion in free cash flow.
Dividend: The board proposed a dividend of €0.02 per share.
Outlook: Nokia reiterated FY22 net sales guidance of €23.9 billion - €25.1 billion (constant currency unchanged, adjusted for currency).
Price Action: NOK shares closed lower by 1.94% at $4.56 on Wednesday.
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