## Nokia (NOK) Earnings Preview: What to Expect on October 17th
Investors are eagerly awaiting Nokia’s (NOK) upcoming earnings report, scheduled for Thursday, October 17th, 2024. The telecom giant’s financial performance will be under the microscope, with analysts predicting an earnings per share (EPS) of $0.08. But beyond the numbers, investors are looking for signs of growth and positive guidance for the future.
What to Watch for:
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EPS Beat:
Nokia has a history of exceeding EPS estimates, which often leads to positive stock price movements. Last quarter, the company surpassed expectations by $0.01, resulting in a 0.83% share price increase the following day. Investors will be hoping for a repeat performance.*
Guidance:
Even more important than a single quarter’s results is the company’s outlook for the future. Investors want to see if Nokia expects continued growth in its core businesses, particularly in its mobile networks and network infrastructure segments.*
Peer Performance:
Nokia’s earnings report will be viewed in the context of the broader telecom industry. How does its performance compare to its peers like Juniper Networks, F5, and Ciena? Understanding how Nokia stacks up against the competition will be crucial for investors.Analyzing the Past:
Let’s take a look at Nokia’s recent performance to get a sense of its trajectory:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $0.050 | $0.065 | 1.0% |
| Q1 2024 | $0.06 | $0.10 | 1.0% |
| Q4 2023 | $0.15 | $0.11 | -0.0% |
| Q3 2023 | $0.090 | $0.054 | -2.0% |
As you can see, Nokia’s earnings have been somewhat volatile in recent quarters, with some positive surprises mixed in with some disappointments. This makes the upcoming report all the more important.
Analyst Sentiment:
Analysts are generally optimistic about Nokia’s future prospects. The consensus rating from analysts is ‘Outperform,’ with an average one-year price target of $6.5. This suggests a potential upside of 47.39% from current trading levels.
Comparing Nokia to its Peers:
It’s essential to understand how Nokia performs relative to its competitors in the telecom space. Here’s a look at the analyst ratings and average one-year price targets for Juniper Networks, F5, and Ciena:
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Juniper Networks:
Neutral trajectory, with an average 1-year price target of $40.0 (potential 807.03% upside).*
F5:
Neutral trajectory, with an average 1-year price target of $211.0 (potential 4684.58% upside).*
Ciena:
Neutral trajectory, with an average 1-year price target of $63.79 (potential 1346.49% upside).Key Takeaway:
Nokia’s revenue growth is lagging behind its peers, but it is in the middle of the pack for Gross Profit. Notably, Nokia stands out with the highest Return on Equity (ROE) among its peers.Nokia’s Fundamentals:
Nokia provides telecom equipment and services that are essential for building wireless and fixed-line networks. It operates in four key segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Research and Licensing. Nokia’s financial position is generally strong, with a market capitalization that surpasses industry standards.
Key Financial Metrics:
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Market Capitalization:
Above industry average, indicating a large and robust market position.*
Revenue Growth:
Declined by approximately -17.87% over the past three months, lagging behind industry peers.*
Net Margin:
Impressive, exceeding industry averages, highlighting strong profitability and cost management.*
Return on Equity (ROE):
Exceeds industry averages, demonstrating effective use of equity capital.*
Return on Assets (ROA):
Surpasses industry standards, reflecting efficient asset utilization for optimal returns.*
Debt-to-Equity Ratio:
Below industry norms, signifying a sound financial structure.The Bottom Line:
Nokia’s upcoming earnings report will be a pivotal event for investors. While the company faces challenges in revenue growth, its financial fundamentals remain strong. Keep an eye on the company’s EPS, guidance, and how it compares to its peers. This information will be crucial for determining Nokia’s future trajectory and whether it remains a viable investment for the long term.