Zinger Key Points
- Nokia Q4 sales rose 10% to $6.39B, beating estimates, with EPS of $0.19 vs. $0.13 expected, net income surged to $813M.
- Nokia sees strong growth in Network Infrastructure and Cloud Services, proposes $0.14 dividend, stock up 21% in 12 months.
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Nokia Corp (NYSE: NOK) reported fiscal fourth-quarter net sales growth of 10% year-on-year to 5.98 billion euros ($6.39 billion), beating the analyst consensus estimate of $6.17 billion.
This reflects a strong recovery in demand from communication service providers, notably in North America. Nokia expects the trend to persist in 2025.
The comparable EPS was 19 cents (0.15 euros), compared to the analyst consensus estimate of 13 cents.
The reported net income is 813 million euros, up from a loss of 33 million euros a year ago.
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Comparable net profit was 977 million euros, up from 555 million euros a year earlier.
Network Infrastructure sales increased by 17% year over year in CC with growth in all business divisions. Cloud and Network Services sales increased by 7% year over year in CC driven by strength in both Core Networks and Enterprise Campus Edge.
Nokia Tech sales climbed by 85% year over year in CC, due to catch-up payments and also a higher net sales run-rate from deals signed in the quarter along with previously signed smartphone license agreement renewals.
Mobile Network sales declined by 2% year over year in CC, driven by APAC, while both Americas and EMEA grew.
Margins: Gross margin climbed by 280 bps to 46.1%. The comparable gross margin improved by 250 bps to 47.2% with a strong contribution from Nokia Technologies.
The operating margin increased by 540 bps to 15.3%, and the comparable operating margin improved by 380 bps to 19.1%, mainly due to higher gross margin and continued cost control.
In the quarter, Nokia held 4.9 billion euros in net cash and generated 0.05 billion euros in free cash flow.
Dividend: The board proposed a dividend authorization of 0.14 euros per share.
FY25 Outlook: Nokia expects a comparable operating profit of 1.9 billion euros-2.4 billion euros and free cash flow conversion from a comparable operating profit of 50%-80%.
Nokia stock surged 21% in the last 12 months. Investors can gain exposure to the stock through Defiance Quantum ETF QTUM and Defiance Connective Technologies ETF SIXG.
Price Action: NOK stock is up 4.28% at $4.63 premarket at the last check on Thursday.
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Image: Courtesy of Nokia
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