(RTTNews) – Finnish network company Nokia (NOK) reported that its third quarter profit attributable to equity holders of the parent rose to 169 million euros or 0.03 euros per share from 139 million euros or 0.02 euros per share in the same quarter last year.
Comparable profit from continuing operations for the third quarter increased to 358 million euros from last year’s 293 million euros. The increase in comparable profit from continuing operations was driven by the increase in comparable operating profit along with a net positive movement in financial income and expense, reflecting increases in interest income caused by higher cash balances. These were somewhat offset by higher income tax expenses.
The company’s comparable operating profit outlook for fiscal year 2024 remains between 2.3 billion euros and 2.9 billion euros, and it is currently tracking within the bottom-half of the range. The net sales recovery is happening slower than the company expected previously, however, this is being partially offset by an improving gross margin and quick action on cost. The company expects to be at the high end of its free cash flow target of 30% to 60% conversion from comparable operating profit.
Nokia sees further opportunities to increase margins beyond 2026 and believes an operating margin of 14% remains achievable over the longer term.
The company said it will distribute a dividend of 0.03 euros per share. The dividend record date is 22 October 2024 and the dividend will be paid on 31 October 2024.
Comparable earnings per share for the third quarter were 0.06 euros up from 0.05 euros in the prior year.
Net sales for the third-quarter decreased to 4.33 billion euros from 4.71 billion euros in the prior year. Quarterly net sales declined 7% year-over-year in constant currency and 8% on a reported basis, as growth in Network Infrastructure and Nokia Technologies was offset by a decline in Mobile Networks, primarily in India, and a divestment in Cloud and Network Services.
On 27 June 2024, Nokia announced its intention to acquire Infinera in a transaction that valued Infinera at US$1.7 billion equity value with up to 30% of the consideration to be paid in Nokia American depositary shares, depending on the elections of Infinera shareholders. Nokia’s Board of Directors is committed to repurchase additional shares on top of the on-going 600 million euros program to offset the dilution from the transaction to Nokia shareholders.
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