October 17, 2024 06:28 GMT
TECHNOLOGY: Nokia Q3 Results; Sales Weaker, Op Profit Stronger
TECHNOLOGY
Ba1/BBB-/BBB-
Ongoing top-line weakness albeit the cost savings programme has again taken the bite out of the impact with both op profit and FCF better YoY. Still looks a worse report than Ericsson’s on Monday.
- Q3 sales -7% YoY cFX (reported -9% vs. BBG consensus driven by a 12% miss in Mobile Networks (-17% YoY, half the business) and a 9% miss in Network Infra (+1%, one third)).
- Comp. op profit was +9% YoY (+2% vs. consensus) for a margin of 10.5% from 9.5% in Q2 and 8.9% in Q323.
- Q3 FCF of EUR 0.6bn vs. EUR -0.4bn in Q323 with the 9M23 figure at EUR 2bn vs. EUR 0.9bn in 9M23. Net cash balance of EUR 5.5bn flat QoQ.
- FY guidance confirmed; “We expect to be at the high end of our free cash flow target of 30% to 60% conversion from comparable operating profit.”
- “As I reflect on our performance in the third quarter, I am optimistic we are now turning the corner in many parts of our business, even if some continue to experience market weakness.”
- Call at 09:30 BST: https://edge.media-server.com/mmc/p/uvvqddt9/
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