Latest News

Nokia Reinstates Dividend, Sets New, Long-Term Margins Target

Text size

The logo of telecommunications giant Nokia before the company’s press conference in Espoo, Finland.
Markku Ulander /Lehtikuva/AFP via Getty Images

Nokia on Thursday reinstated its quarterly dividend, launched a share buyback program and introduced new, long-term goals as the Finnish telecom equipment maker starts to see its turnaround strategy pay off.

The company said annual revenue this year should be €22.6 billion ($25.5 billion) to €23.8 billion ($26.8 billion), up from €22.2 billion in 2021.

Nokia (ticker: NOK) also set a new long-term target for operating margins of at least 14%, replacing its earlier 2023 target of between 11% and 13%.

“Nokia enters 2022 in a strong position with improved margins, faster-than-expected strategy execution and a high order backlog, although the global supply chain situation remains tight,” Chief Executive Pekka Lundmark said in a statement.

“We see opportunities in the 5G rollout and growing enterprise market,” he added.

Fourth-quarter revenue fell 2% to €6.41 billion from the same period in 2020, missing expectations of €6.51 billion, according to analysts polled by FactSet.

Nokia’s U.S.-listed stock dropped 4.02% in premarket on Thursday. In Helsinki trading, Nokia (ticker: NOKIA.Finland) shares were down 3.18%

“While we view positively the level of margin ambition at over 14%, we think the time scale of 3-5 years is disappointing relative to rising expectations,” Citi analysts said in a note on Thursday.

“We understand management’s likely aim of under-promising and over-delivering (in which Nokia has done well under the current management team), but anticipate a cautious initial response to today’s long-term guidance,” the analysts added.

Nokia also proposed a dividend, suspended since 2019, of €0.08 per share and launched a two-year, €600 million share buyback program.

Write to

Kelley Blue Book: The 2022 Toyota RAV4 Prime—the wildly popular SUV rises to a new level

Previous article

Meta Stock Gets Hammered. But Here’s the Argument for Buying the Big Drop.

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News