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Oct. 29, 2020, 5:58 a.m. EDT

Nokia shares slump on weaker-than-expected margin view

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By Steve Goldstein

Shares of Nokia /zigman2/quotes/203672305/delayed FI:NOKIA -1.11% /zigman2/quotes/207421390/composite NOK -4.02% slumped 17% in Helsinki, after the telecom equipment maker lowered its 2020 guidance and introduced 2021 margin guidance below market expectations.

Nokia said its third-quarter profit more than doubled to €203 million, while sales fell 7% to €5.29 billion. On an adjusted basis, Nokia’s earnings per share was steady at 5 eurocents.

Nokia lowered its 2020 adjusted earnings view to 23 cents from 25 cents, and its operating margin view to 9% from 9.5%. It expects 2021 adjusted operating margins between 7% and 10%, below consensus expectations of nearly 11%.

Rival Samsung /zigman2/quotes/209800866/delayed KR:005930 -0.36% in September won a key 5G contract from Nokia customer Verizon Communications /zigman2/quotes/204980236/composite VZ -1.05% .

” We have lost share at one large North American customer, see some margin pressure in that market, and believe we need to further increase R&D [research and development] investments to ensure leadership in 5G,” said Pekka Lundmark, who completed his first quarter as chief executive.

Nokia also announced a new corporate structure.

/zigman2/quotes/203672305/delayed
FI : Finland: Helsinki
3.25
-0.04 -1.11%
Volume: 9.59M
March 5, 2021 3:09p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€18.88 billion
Rev. per Employee
N/A
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/zigman2/quotes/207421390/composite
US : U.S.: NYSE
$ 3.82
-0.16 -4.02%
Volume: 77.66M
March 4, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$22.80 billion
Rev. per Employee
N/A
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/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
82,100.00
-300.00 -0.36%
Volume: 20.51M
March 5, 2021 3:30p
P/E Ratio
21.37
Dividend Yield
1.72%
Market Cap
₩562273.12 billion
Rev. per Employee
N/A
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/zigman2/quotes/204980236/composite
US : U.S.: NYSE
$ 54.80
-0.58 -1.05%
Volume: 23.69M
March 4, 2021 4:00p
P/E Ratio
12.75
Dividend Yield
4.58%
Market Cap
$229.17 billion
Rev. per Employee
$970,439
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