Nokia shares continue to rise above $ 4

16. 11. 2020 Monday / By: Robert Denes / Business / Exact time: BST / Print this page

Nokia can lose too... Nokia is working with NASA to bring a 4G network to the moon. In fact, it has lost 16% of its value in the two and a half weeks since then. Nokia’s share price fell because on October 28, it lowered its 2020 profit outlook. Meanwhile, investors need to buy into the company’s new corporate strategy, formulated by Pekka Lundmark.

Nokia's third-quarter revenue included $ 6.22 billion in revenue and $ 571.4 million in adjusted operating income, both lower than analyst estimates. As I mentioned, it also reduced its 2020 earnings guidelines from 25 eurocents per share to 23 eurocents, with an adjusted operating margin of 9% from 9.5% a year earlier.

Nokia expects its center-adjusted operating margin to be 8.5% in 2021, 210 basis points lower than analysts ’estimates for next year.

On the positive side, it expects € 600 million ($ 709 million) in free cash flow by 2020. In 2019, it had a negative free cash flow of € 300 million ($ 355 million), so it’s okay to reduce FCF’s guidance for the year on a relative basis.

It would be different if Nokia paid a dividend. However, this will pause until its cash holdings reach about € 2 billion ($ 2.4 billion). It finished the third quarter with cash of $ 1.87 billion ($ 2.2 billion), so it is at the peak of the sequel.

Unfortunately, until Nokia’s CEO lays out the company’s complete strategy — the first phase was during its Q3 2020 release, the next phase is in December. The final piece will be covered at its Capital Markets Day in mid-March...read more


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