Nokia Stock: Double-Digit Plunge Following Weak Earnings

Nokia shares tumbled over 10% on Thursday, marking a severe setback for investors and positioning it as the worst performer in the Euro Stoxx 50 index. The Finnish network equipment provider reported disappointing first-quarter results that shook market confidence. Revenue declined by 1% to €4.39 billion compared to the same period last year, but the profit figures painted an even bleaker picture. The company posted a loss of €60 million from continuing operations-a dramatic reversal from the €451 million profit recorded in the previous year's comparable quarter. This translates to a loss of €0.01 per share versus a €0.08 gain previously. Even more concerning was the comparable operating profit, which plummeted by 74%, dropping from €600 million to just €156 million.

Management Outlook Remains Cautious

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Nokia?

Despite the troubling quarterly performance, Nokia's management is maintaining its full-year guidance, still projecting a comparable operating profit between €1.9 billion and €2.4 billion. However, investors should note potential headwinds on the horizon. The company has warned about possible short-term disruptions from the current tariff situation, estimating a negative impact of €20-30 million on second-quarter comparable operating profits due to existing duties. The outlook for the second half of the year remains uncertain given the unpredictable tariff environment. This setback interrupts what had been a positive twelve-month trajectory for Nokia's stock, which had gained over 40% partly due to artificial intelligence-related market enthusiasm.