Nokia's Sales Slide Despite Big Deals with Apple and Samsung: What's Next for This Tech Giant?
Portfolio Pulse from Anusuya Lahiri
Nokia Corp (NYSE:NOK) reported a significant decline in fiscal Q4 2023 net sales and earnings, missing consensus estimates. Sales dropped 23% Y/Y to €5.71 billion, and EPS was €(0.01), with a net loss of €(33) million. Despite major deals with Apple (NASDAQ:AAPL), Samsung (OTC:SSNLF), Honor, and OPPO, sales in various segments decreased. Nokia expects a challenging H1 2024 but projects growth in H2. The company proposed a dividend and initiated a buyback program. NOK shares rose 8.50% premarket.
January 25, 2024 | 11:28 am
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NEUTRAL IMPACT
Apple has a significant long-term deal with Nokia, which may be viewed positively, but Nokia's overall performance may not have a direct short-term impact on Apple's stock.
Apple's deal with Nokia is a positive, but given Apple's size and diversified business, the impact of Nokia's earnings on Apple's stock is likely minimal in the short term.
CONFIDENCE 75
IMPORTANCE 20
RELEVANCE 30
NEUTRAL IMPACT
Samsung's deal with Nokia is notable, but Nokia's Q4 performance is not expected to have a significant short-term impact on Samsung's stock.
While the deal with Nokia is a positive development for Samsung, the impact of Nokia's financial results on Samsung's stock is likely limited in the short term due to Samsung's larger market presence.
CONFIDENCE 75
IMPORTANCE 20
RELEVANCE 30
POSITIVE IMPACT
Nokia reported lower Q4 sales and earnings, missing estimates, but shares rose 8.50% premarket after announcing a dividend and buyback program.
The premarket stock price increase suggests a positive short-term impact, likely due to the dividend announcement and buyback program, despite the earnings miss.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100