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Will Top-Line Expansion Boost Nokia's (NOK) Q3 Earnings?
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Nokia Corporation (NOK - Free Report) is set to release its third-quarter 2023 results on Oct 19, before the opening bell. In the last reported quarter, the company reported adjusted earnings of 8 cents per share and generated higher revenues year over year.
The company has secured multiple deals in South Asia, capitalizing on the increasing proliferation towards digital transformation in the region. The introduction of various software solutions with cutting-edge AI capabilities, combined with growing demand for Nokia’s robust 5G portfolio, is expected to have resulted in a revenue expansion year over year in the third quarter.
Factors at Play
In the third quarter, Nokia launched the AVA Data suite on Google Cloud to augment the development of software solutions with advanced AI-ML capabilities. The AVA Data suite is a comprehensive collection of readily available and proven data products. Its integration with Google Cloud enriches communication service providers with a standard library of high-quality reusable networks and IT data packages across 4G and 5G domains. It also introduced an AI-powered Enterprise Edge Charging Software Solution to boost monetization capabilities for edge services across different sectors such as smart cities, utilities and railways. These are likely to have generated incremental revenues in the third quarter.
In the quarter-under-review, Mediacom Communications, a U.S.-based cable operator, opted to deploy Nokia’s XGS-PON (Passive Optical Network) technology to provide multi-gigabit broadband service in remote rural areas in the country. Nokia inked a multi-year deal with Eastlink, a prominent communication service provider in Canada, to expand its coverage area. Nokia is also enhancing a significant segment of Eastlink's mobile radio access network infrastructure. These are likely to be reflected in the upcoming results.
Globe Telecom has leveraged Nokia’s Interleaved Passive Active Antennas to expand its 4G/5G coverage in the Philippines. Nokia collaborated with NTT Ltd., a prominent IT infrastructure and service company in Thailand, to support digitization efforts across the country. Its offering includes Digital Automation Cloud, network automation, the industrial digitalization edge platform known as MX Industrial Edge and more. These agreements will bolster Nokia’s presence in the South East Asia region and are likely to have boosted its top-line performance.
During the quarter, Nokia introduced the 25G PON starter kit solution. The solution accelerates the deployment of high-speed connectivity for enterprises while helping operators maximize their revenue potential. The company unveiled an improved end-to-end home connectivity software for broadband devices. Dubbed Corteca, the software will enable service providers to enhance customer experiences, create new revenue-generating opportunities and reduce operational costs.
Nokia also launched a wide array of essential network infrastructure products and services through its ‘network-in-a-box’ program. These developments are likely to have had a favorable effect on the company’s third-quarter performance.
Our estimate for revenues from the Mobile Networks vertical is pegged at €2,553.4 million ($2,778.7 million). For the Network Infrastructure segment, our estimate for revenues is pegged at €2,110.8 million ($2,297 million). Revenue from Cloud & Network Services is estimated at €773 million ($841.2 million).
For the September Quarter, the Zacks Consensus Estimate for the company’s total revenues is pegged at $6,356 million, indicating an increase from $6,290 million reported in the prior-year quarter. Adjusted earnings per share are pegged at 9 cents, suggesting a decline from the prior-year quarter’s recorded figure of 10 cents.
Earnings Whispers
Our proven model does not conclusively 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 9 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 #3 (Hold).
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:
Motorola Solutions, Inc. (MSI - Free Report) has an Earnings ESP of +3.58% and carries a Zacks Rank of 2. The company is set to report quarterly numbers on Nov 2.
Pinterest (PINS - Free Report) has an Earnings ESP of +4.76% and has a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Oct 26.
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Will Top-Line Expansion Boost Nokia's (NOK) Q3 Earnings?
Nokia Corporation (NOK - Free Report) is set to release its third-quarter 2023 results on Oct 19, before the opening bell. In the last reported quarter, the company reported adjusted earnings of 8 cents per share and generated higher revenues year over year.
The company has secured multiple deals in South Asia, capitalizing on the increasing proliferation towards digital transformation in the region. The introduction of various software solutions with cutting-edge AI capabilities, combined with growing demand for Nokia’s robust 5G portfolio, is expected to have resulted in a revenue expansion year over year in the third quarter.
Factors at Play
In the third quarter, Nokia launched the AVA Data suite on Google Cloud to augment the development of software solutions with advanced AI-ML capabilities. The AVA Data suite is a comprehensive collection of readily available and proven data products. Its integration with Google Cloud enriches communication service providers with a standard library of high-quality reusable networks and IT data packages across 4G and 5G domains. It also introduced an AI-powered Enterprise Edge Charging Software Solution to boost monetization capabilities for edge services across different sectors such as smart cities, utilities and railways. These are likely to have generated incremental revenues in the third quarter.
In the quarter-under-review, Mediacom Communications, a U.S.-based cable operator, opted to deploy Nokia’s XGS-PON (Passive Optical Network) technology to provide multi-gigabit broadband service in remote rural areas in the country. Nokia inked a multi-year deal with Eastlink, a prominent communication service provider in Canada, to expand its coverage area. Nokia is also enhancing a significant segment of Eastlink's mobile radio access network infrastructure. These are likely to be reflected in the upcoming results.
Globe Telecom has leveraged Nokia’s Interleaved Passive Active Antennas to expand its 4G/5G coverage in the Philippines. Nokia collaborated with NTT Ltd., a prominent IT infrastructure and service company in Thailand, to support digitization efforts across the country. Its offering includes Digital Automation Cloud, network automation, the industrial digitalization edge platform known as MX Industrial Edge and more. These agreements will bolster Nokia’s presence in the South East Asia region and are likely to have boosted its top-line performance.
During the quarter, Nokia introduced the 25G PON starter kit solution. The solution accelerates the deployment of high-speed connectivity for enterprises while helping operators maximize their revenue potential. The company unveiled an improved end-to-end home connectivity software for broadband devices. Dubbed Corteca, the software will enable service providers to enhance customer experiences, create new revenue-generating opportunities and reduce operational costs.
Nokia also launched a wide array of essential network infrastructure products and services through its ‘network-in-a-box’ program. These developments are likely to have had a favorable effect on the company’s third-quarter performance.
Our estimate for revenues from the Mobile Networks vertical is pegged at €2,553.4 million ($2,778.7 million). For the Network Infrastructure segment, our estimate for revenues is pegged at €2,110.8 million ($2,297 million). Revenue from Cloud & Network Services is estimated at €773 million ($841.2 million).
For the September Quarter, the Zacks Consensus Estimate for the company’s total revenues is pegged at $6,356 million, indicating an increase from $6,290 million reported in the prior-year quarter. Adjusted earnings per share are pegged at 9 cents, suggesting a decline from the prior-year quarter’s recorded figure of 10 cents.
Earnings Whispers
Our proven model does not conclusively 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 9 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 #3 (Hold).
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:
Alphabet Inc. (GOOGL - Free Report) is set to release quarterly numbers on Oct 24. It has an Earnings ESP of +3.06% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Motorola Solutions, Inc. (MSI - Free Report) has an Earnings ESP of +3.58% and carries a Zacks Rank of 2. The company is set to report quarterly numbers on Nov 2.
Pinterest (PINS - Free Report) has an Earnings ESP of +4.76% and has a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Oct 26.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: €1 = $1.08824 (period average from Jul 1, 2023, to Sep 30, 2023).