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Nokia (NOK) Inks 5G Patent License Agreement With Samsung

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Nokia Corporation (NOK - Free Report) recently inked a new cross-license 5G patent agreement with Samsung after the previous deal expired at the end of 2022. The undisclosed amount deal includes Nokia’s essential inventions in 5G and other technologies.

Per this agreement, the company will receive payments from Samsung for a multi-year period effective from Jan 1, 2023. The deal accentuates Nokia’s strong patent portfolio, long-term investment in R&D and its rich heritage in cellular and other technologies.

The recently signed deal will enable world’s major smartphone manufacturer Samsung to reap the benefit of the telecommunications equipment manufacturer’s strong 5G innovations and infrastructure. Approximately 20,000 patent families constitute Nokia's patent portfolio. NOK possesses around 4500 patents that are crucial for 5G. The deal complies with the presumptions the company disclosed in its long-term outlook commentary released in concurrence with the third-quarter results.

Nokia has made significant progress on its three-phased journey of value creation. The company’s strategy includes Reset, Accelerate and Scale. Its focus on capital allocation and technology leadership is expected to help it grow profitably. Nokia is on track to achieve sustainable, profitable growth and technology leadership. The company is witnessing healthy momentum in its focus areas of software and enterprise, which augurs well for the licensing business. It is poised to benefit from copper and fiber deployments of passive optical networking.

Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company’s deal win rate is encouraging, with notable successes in the key 5G markets of the United States and China. Its installed base of high-capacity AirScale products, which enable customers to upgrade to 5G quickly, is growing fast.

The stock has declined 17% in the past year compared with the industry’s decline of 22.6%.
 

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Nokia currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Motorola Solutions, Inc. (MSI - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 6.6%, on average, in the trailing four quarters. Earnings estimates for MSI for the current year have remained unchanged in the past 60 days at $10.20 per share.

Motorola is a leading communications equipment manufacturer and has strong market positions in bar code scanning, wireless infrastructure gear, and government communications.

Comtech Telecommunications (CMTL - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 34%, on average, in the trailing four quarters.

Comtech Telecommunications designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The company sells products to a diverse customer base in the global commercial and government communications markets.

Jabil Inc. (JBL - Free Report) , carrying a Zacks Rank #1 (Strong Buy), delivered an earnings surprise of 8.7%, on average, in the trailing four quarters. Earnings estimates for JBL for the current year stand at $8.37 per share.

Jabil is benefiting from strong demand in key end markets with excellent operational execution and skillful management of supply chain dynamics. It is likely to witness healthy top-line growth owing to secular tailwinds in healthcare, automotive, industrial, 5G and cloud businesses.

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