(Bloomberg) – Nokia Oyj increased its earnings guide for an entire year after cutting costs and reviewing its products to catch up with rivals in the fifth-generation wireless network market.
The company expects diluted earnings per share of 0.25 cents, more or less 5 cents, compared to a previous projection of 0.23 cents. Adjusted operating income for the second quarter was 423 million euros, exceeding the average analyst̵7;s estimates of 289.8 million euros according to Bloomberg- monitoring of valuations.
The latest results from CEO Rajeev Suri as CEO mark a low point for Nokia after it lost ground to competitors in 5G mobile networks and the coronavirus disrupted supply chains and slowed investment. Covid-19 and China are declining, Suri said in the statement. “We expect most sales lost in the quarter due to Covid-19 to move to future periods.” Her fortunes will improve as a new base station with low radio access puts her back to playing 5G and Huawei is forced to leave major European markets by a US-led boycott campaign. Nokia could say it expects low performance from its main airship market, excluding China. Earlier, he had said he hoped to act according to the market.
Shares of Nokia rose about 4% during the year until the close on Thursday. More analysts advise customers to buy stocks that recommend a hold or sell position.
Suri’s replacement, Pekka Lundmark, takes over on August 1 and a review of the strategy is expected to begin. Suri’s biggest change was to buy rival Alcatel-Lucent in 2016, a deal that offered Nokia a wider product portfolio but required a complex integration process that analysts said distracted management. when the 5G race began.Nokia’s second quarter net sales. they were down 11% from a year earlier to $ 5.09 billion ($ 6.05 billion), compared to an average analyst forecast of $ 5.31 billion. Nokia had an operating margin of 9.5% plus or minus 1.5 percentage points, compared to a previous average point of 9.0%. Check out the numbers here. Nokia cuts 1,200 French jobs in former Alcatel-Lucent company How Nokia’s Alcatel deal has returned to Haunt Its CEO
(Updates with CEO comments on Key Insights)
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