The Strategist

Nokia unexpectedly ends Q4 with a net loss

01/25/2024 - 10:05

Nokia Corp., the Finnish manufacturer of telecom equipment, saw a 23% decline in revenue in the fourth quarter of 2023 and an unanticipated loss at the end of the quarter.

In contrast to its €3.152 billion profit the previous year, Nokia reported a net loss of €33 million from October to December. Comparatively speaking, it reported a profit of €568 million as opposed to €929 million in the previous year.

Nokia's revenue for the quarter decreased from €7.449 billion to €5.707 billion.

Analysts at FactSet projected an average profit of €530 million (or €672 million on a comparable basis) on sales of €6.28 billion.

Nokia's sales declined by 17% at its mobile network equipment division, 26% at its network infrastructure business, and 8% at its cloud solutions segment.

The comparable operating margin decreased by 70 basis points.

The Board of Directors of the company announced a two-year €600 million share buyback program in addition to proposing a dividend of 13 euro cents per share for 2023.