Vielä WSJ:n uunituore juttu Nokian Q3 ennakko-odotuksista [Citin analyytikko luottaa Nokian saavan IPR sopimukset sekä Applelta että Oppolta ja Vivolta seuraavilla kvartaaleilla. Nokian Technology divisioonan tuottojen pankki ennakoi kehittyvän hyvin - kvartaalien välillä on vaihtelua sopimusten tultua katkolle]:
October 19, 2022 09:09 a.m. EDT
Finland’s Nokia Corp. is scheduled to report results for the third quarter on Thursday. Here’s what you need to know:
NET PROFIT: Nokia is expected to report net profit of 453 million euros ($446.6 million) in the third quarter, up from EUR351 million in the same period a year earlier, according to a FactSet analyst poll. On a compara-ble basis, analysts expect net profit to rise to EU-R510 million in the quar-ter, from EUR463 million a year earlier.
SALES: Sales are forecast to rise 12% to EUR6.05 billion, according to FactSet.
–NETWORKS: Citi ana-lysts expect a relatively quiet update from Nokia, with the company continu-ing to execute well in both its key divisions of Mobile Networks and Network Infrastructure. “We expect such operational momentum to have contin-ued in 3Q,” Citi said in a note. In Mobile Networks, the year-on-year compara-tives in 2H 2022 are materially easier and Citi expects mid-single digit growth in 3Q before accelerating to low-dou-ble digits in 4Q. In Net-work Infrastructure, Citi estimates fixed and sub-marine networks lead the way with another quarter of double digit growth, while IP routing and optical grow at a slower rate.
–MARGINS: JPMorgan said in a note that it expects Nokia’s Mobile Networks gross margin to rise to around 40% in 3Q, as higher shipments of its chips continued, even after adjusting for any negative impact from inflation in other supply-chain elements. The U.S. bank sees a group 3Q EBIT margin of 12.2%.
–GUIDANCE: Nokia reiterated its 2022 guid-ance during its 2Q results on a constant currency basis, but it was raised slightly to reflect the recent currency benefit of around 3% to net sales and the comparable operating margin target was reiter-ated at 11%-13.5%. “We believe that the un-changed guidance is conservative on Nokia’s end and we would expect a guidance upgrade during its results if it manages to renew technol-ogy contracts,” UBS said in a note.
–INTELLECTUAL PROPERTY:!Beyond the core networking fundamen-tals, intellectual property rights negotiations/litigation are the other key area on which in-vestors should focus, Citi said . “We expect little to no news on this front at 3Q results, but see Nokia gaining traction in their IPR court proceedings.”
Citi said investors should be prepared to look through the delayed revenue recognition, but the U.S. bank continues to think Nokia is well posi-tioned in its negotiations, not only versus Oppo and Vivo but more impor-tantly Apple. “Such pro-cesses often add volatility to reported financials, but we think the long-run trend is a positive one for Nokia, particularly rela-tive to current expecta-tions of flattish revenue and profit trends over time for its Technologies division.”
