Nokia quarterly profit misses forecast
2023.04.20 01:39
© Reuters. FILE PHOTO: A general view of the Nokia headquarters, showing the new logo, in Espoo, Finland, is seen in this handout image released February 26, 2023. NOKIA/Handout via REUTERS
STOCKHOLM (Reuters) -Nokia on Thursday reported quarterly operating profit below market expectations as the Finnish company is selling more 5G gear in low-margin markets and said it was seeing signs of customer spending slowing down.
First-quarter comparable operating profit fell to 479 million euros ($524.94 million) from 583 million last year, missing the 532.4 million euro mean forecast of analysts polled by Refinitiv.
Comparable gross margin fell to 37.7% from 40.7%.
“Looking forward, we are starting to see some signs of the economic environment impacting customer spending,” Chief Executive Pekka Lundmark said in a statement.
Apart from getting big contracts from telecom operators for launch of 5G, Nokia (NYSE:) has also managed to diversify its base to industrial customers who set up their own private 5G networks at power plants, utilities and mines among others.
Net sales grew 10% in the quarter to 5.86 billion euros, beating estimates of 5.72 billion euros.
($1 = 0.9125 euros)
