Nokia (NOK.US) Q1 operating profit increased 25% year over year, reaffirms full-year results guidance

The Zhitong Finance App learned that on April 18, Nokia (NOK.US) announced financial results for the first quarter of 2024. According to financial reports, Nokia's Q1 net sales were 4.667 billion euros, down 20% year on year, falling short of analysts' expectations of 4.96 billion euros. Adjusted operating profit was €597 million, up 25% year over year, better than analysts' general expectations of €569 million; adjusted earnings per share were $0.09, compared to $0.06 for the same period last year.

The adjusted gross margin was 48.6%, an increase of 1,090 basis points over the same period last year. The adjusted operating margin was 12.8%, an increase of 460 basis points over the same period last year.

By business segment, net sales of the network infrastructure business were 1,662 million euros, down 26% year on year; net sales of mobile network business were 1,577 million euros, down 39% year on year; net sales of cloud and network services business were 652 million euros, down 14% year on year; and net sales of Nokia technology business were 757 million euros, up 213% year on year.

Nokia CEO Pekka Lundmark said that net sales declined in the first quarter due to continued market weakness, but the company saw a continued improvement in order trends, particularly with regard to network infrastructure orders. He added that the company is confident of strong growth in the second half of the year and meeting expectations for the full year.

Nokia reiterated that it expects adjusted operating profit of 2.3 billion to 2.9 billion euros for the full year of 2024, and free cash flow accounts for 30% to 60% of the adjusted operating profit.