Nokia Stock: Q3 Performance Disappoints, Future Outlook Mixed

Nokia's third-quarter results for 2024 fell short of market expectations, triggering a significant stock price decline. The Finnish network equipment manufacturer reported an 8% decrease in revenue to €4.3 billion, below analyst projections. Despite the challenging market conditions, particularly in the mobile sector, Nokia managed to increase its operating profit by 9% to €454 million through cost-cutting measures and improved gross margins. Net profit also saw a rise of nearly one-third to €175 million.

Market Reaction and Future Prospects

The disappointing quarterly figures led to a 4.2% drop in Nokia's share price, pushing it down to €3.88 and making it the weakest performer in the EuroStoxx 50. Despite this setback, the stock has maintained a 27% gain since the beginning of the year. Looking ahead, Nokia's CEO expressed optimism for the fourth quarter, anticipating significant growth acceleration in network infrastructure, especially in fixed network and IP products in the US market. However, experts suggest that market expectations for the full-year operating result may need to be revised downward by approximately 5%, urging investors to exercise caution.