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Nokia (NOK) to Report Q3 Earnings: What's in the Cards?
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Nokia Corporation (NOK - Free Report) is scheduled to report third-quarter 2022 results on Oct 20, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 10%. It pulled off a trailing four-quarter earnings surprise of 15.5%, on average.
The Finland-based telecom equipment provider is expected to have recorded year-over-year lower revenues due to supply-chain constraints and a challenging macroeconomic environment.
Factors at Play
During the quarter, Nokia inked a five-year deal with Norwegian mobile firm Ice to expand and upgrade the carrier’s 5G infrastructure across the country. The deal will enable the fastest-growing mobile network operator in the Nordic region to offer superior 5G services to its customers and extend its footprint to hitherto untapped areas. The company was also selected by a leading infrastructure and utility company, Energie AG Oberosterreich, to develop an optical transport network in Upper Austria covering 18 sites. These are likely to be reflected in the upcoming quarterly results.
In the to-be-reported quarter, Nokia augmented its enterprise partner ecosystem through improved MX Industrial Edge (MXIE) capabilities. This will enable MXIE to host applications from different ecosystems comprising legacy non-cloud native workloads and facilitate application development to further improve enterprise digital transformation and operational technology network security. By combining analytics capabilities within secure, high-performance private wireless networks, companies will benefit from various scenarios that help drive process efficiency, security, sustainability and flexibility. This is likely to translate into incremental revenues in the third quarter.
However, the company disclosed that it will shut down its operations in Russia in the wake of an unprovoked attack on the sovereignty of Ukraine by Russian forces. Nokia has around 2000 employees in Russia and is expected to close its operations in the country by the end of 2022. It will continue its limited maintenance of critical networks in Russia and abide by its contractual and humanitarian obligations in the coming months. This is likely to have impacted its top line in the quarter.
The Zacks Consensus Estimate for total revenues for the company stands at $6,271 million. It generated revenues of $6,366 million in the prior-year quarter. The consensus mark for earnings is currently pegged at 10 cents per share, indicating a slight improvement from 9 cents reported in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Nokia this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 10 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nokia currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Verizon Communications Inc. (VZ - Free Report) is +0.73% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 21.
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +11.60% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 27.
Image: Bigstock
Nokia (NOK) to Report Q3 Earnings: What's in the Cards?
Nokia Corporation (NOK - Free Report) is scheduled to report third-quarter 2022 results on Oct 20, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 10%. It pulled off a trailing four-quarter earnings surprise of 15.5%, on average.
The Finland-based telecom equipment provider is expected to have recorded year-over-year lower revenues due to supply-chain constraints and a challenging macroeconomic environment.
Factors at Play
During the quarter, Nokia inked a five-year deal with Norwegian mobile firm Ice to expand and upgrade the carrier’s 5G infrastructure across the country. The deal will enable the fastest-growing mobile network operator in the Nordic region to offer superior 5G services to its customers and extend its footprint to hitherto untapped areas. The company was also selected by a leading infrastructure and utility company, Energie AG Oberosterreich, to develop an optical transport network in Upper Austria covering 18 sites. These are likely to be reflected in the upcoming quarterly results.
In the to-be-reported quarter, Nokia augmented its enterprise partner ecosystem through improved MX Industrial Edge (MXIE) capabilities. This will enable MXIE to host applications from different ecosystems comprising legacy non-cloud native workloads and facilitate application development to further improve enterprise digital transformation and operational technology network security. By combining analytics capabilities within secure, high-performance private wireless networks, companies will benefit from various scenarios that help drive process efficiency, security, sustainability and flexibility. This is likely to translate into incremental revenues in the third quarter.
However, the company disclosed that it will shut down its operations in Russia in the wake of an unprovoked attack on the sovereignty of Ukraine by Russian forces. Nokia has around 2000 employees in Russia and is expected to close its operations in the country by the end of 2022. It will continue its limited maintenance of critical networks in Russia and abide by its contractual and humanitarian obligations in the coming months. This is likely to have impacted its top line in the quarter.
The Zacks Consensus Estimate for total revenues for the company stands at $6,271 million. It generated revenues of $6,366 million in the prior-year quarter. The consensus mark for earnings is currently pegged at 10 cents per share, indicating a slight improvement from 9 cents reported in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Nokia this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 10 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nokia Corporation Price and EPS Surprise
Nokia Corporation price-eps-surprise | Nokia Corporation Quote
Zacks Rank: Nokia currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
AT&T Inc. (T - Free Report) is set to release quarterly numbers on Oct 20. It has an Earnings ESP of +2.70% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Verizon Communications Inc. (VZ - Free Report) is +0.73% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 21.
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +11.60% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.