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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
TECHNOLOGY
- Nokia report before the open tomorrow; BBG consensus is looking for Q1 revenue -15% YoY driven by declines of around a quarter in the two biggest segments, Mobile Networks and Network Infra (~40% of the business each). Op income is seen rising by 19% YoY with the op margin moving from 8.2% to over 12%.
- Q4 results were strong, coming after a challenging H2 that saw MT guidance revised lower in the wake of their AT&T contract loss; Q4 op income beat by over 10% with an op margin of 14.8% vs. an expected 12.5%. Analyst comments focussed on the “green shoots” narrative and the implementation of cost-cuts.
- Credit metrics were broadly stable; Nokia maintains a net cash position and reported strong quarterly FCF of EUR 1.7bn. However, FY24 guidance of 30-60% cash conversion (vs. 34% in FY23) makes it hard to assess the outlook (MT guidance also has a 30pp range).
- Since then, we’ve seen FY24 revenue expectations fall by 2.5% while op profit expectations are close to 2% higher. Equity’s flat since then after paring the post-earnings bounce (vs. +5% for SXXP).
- Nokia’s modest spread outperformance vs. Ericsson since Q4 reporting could somewhat reverse in the wake of soft results given the stronger-than-expected Ericsson report though the Nokia curve looks relatively flat and tight for a company faced with the same sectoral weakness.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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