Tough market conditions and contract loss impact Nokia’s outlook

  • Nokia cuts operating margin guidance due to tough market conditions
  • Lost out on $14 billion AT&T contract to upgrade U.S. networks
  • Operating margin guidance lowered from at least 14% to at least 13%
  • Nokia shares rose 0.9% despite stock being down 31% this year
  • AT&T awarded contract to Nokia’s rival, Ericsson
  • Challenging market environment and AT&T’s decision to lead to declining sales in mobile networks
  • Nokia previously announced plans to lay off 14,000 staff by 2026
  • Nokia still sees opportunities to increase margins in the long term

Nokia has cut its operating margin guidance due to tough market conditions for its mobile networks business. This comes just a week after the company lost out on a $14 billion AT&T contract to upgrade the firm’s U.S. networks. The Finnish phone company has lowered its operating margin guidance from at least 14% to at least 13%, citing a slowdown in sales in 2023 and the normalization of trade in India in 2024. Nokia shares rose 0.9% despite the stock being down 31% this year. The loss of the AT&T contract to Nokia’s rival, Ericsson, has signaled deeper troubles for Nokia’s mobile networks business. Nokia had previously announced plans to lay off 14,000 staff by the end of 2026. However, the company still sees opportunities to increase its margins in the long term.

Public Companies: Nokia (NOKIA), AT&T (T), Ericsson (ERIC), Deutsche Telekom (undefined)
Private Companies:
Key People: Claudia Gilbertallen (Barclays analyst)

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Factuality Level: 7
Justification: The article provides information about Nokia cutting its operating margin guidance and losing out on a contract with AT&T. It also mentions the reasons for the decline in sales and the impact on Nokia’s revenues. The article includes quotes from analysts and information about Nokia’s plans for layoffs and cost-cutting measures. However, it does not provide any opposing viewpoints or alternative perspectives, which could affect the overall factuality level.

Noise Level: 4
Justification: The article provides some relevant information about Nokia’s operating margin guidance and the loss of the AT&T contract. However, it lacks in-depth analysis, scientific rigor, and actionable insights. It also contains some repetitive information and does not explore the consequences of Nokia’s decisions on those who bear the risks.

Financial Relevance: Yes
Financial Markets Impacted: Nokia’s operating margin guidance cut and loss of AT&T contract may impact Nokia’s stock performance.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses Nokia’s operating margin guidance cut and the loss of a major contract to upgrade AT&T’s U.S. networks. While this news may have an impact on Nokia’s financial performance and stock price, there is no mention of an extreme event or its impact.

Reported publicly: www.marketwatch.com