Nokia Stock Rebounds Amid Quarterly Report Disappointment
Nokia Corp (NYSE:NOK) saw its stock rebound on Friday following a selloff the day before, despite its quarterly report falling short of expectations. The Finnish telecom company reported a net sales decline of 8% in the fiscal third quarter, totaling $4.76 billion, which missed the consensus estimate of $5.34 billion. The decrease in revenue was attributed to weakness in the Indian market.
One of the key factors affecting Nokia’s performance was the loss of market share in North America due to contract losses with Verizon Communications Inc (NYSE:VZ) and AT&T Inc (NYSE:T). In response to these challenges, CEO Pekka Lundmark mentioned that while the telecom sector remains a limited growth market for Nokia, the company is now focusing on opportunities in the data center and defense sectors to drive growth.
Despite the setbacks in North America, Nokia is seeing signs of recovery in India, with potential deals with Vodafone Idea and Bharti Airtel on the horizon. To further improve its financial position, Nokia has made strategic cuts to its workforce, laying off 2,000 employees in Greater China and 350 jobs across Europe as part of a cost-cutting initiative. The company aims to save 800 million euros to 1.2 billion euros by 2026 through these measures.
The impact of U.S. sanctions on Huawei also affected Nokia’s business, resulting in a decline in sales in China. However, Nokia remains committed to its leadership under Pekka Lundmark, despite previous reports suggesting a potential change in leadership due to revenue challenges.
As of the last check on Friday, NOK stock was up 9.01% at $4.73. Investors are closely monitoring Nokia’s strategic moves to drive growth and improve its financial performance in the coming quarters.
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