Nokia Posts Strong Profit and Sales Growth in Q4

Nokia's impressive turnaround is evidenced by its fourth-quarter profit of 813 million euros, bolstered by a significant sales growth of 10%. Investors should note key improvements in earnings per share, signaling positive momentum.

Date: 30-01-2025

AI Rating: 7

Profit and Earnings Per Share (EPS)
Nokia reported a fourth-quarter profit of 813 million euros, a notable recovery from a loss of 33 million euros a year earlier. The earnings per share surged to 0.15 euro, reversing the previous year's loss of 0.01 euro. This substantial improvement in EPS reflects a solid turnaround and investor sentiment may shift positively based on these results.

Revenue Growth
The company's net sales rose by 10% to 5.98 billion euros, up from 5.42 billion euros, signifying strong demand for its services and products. The increase of 9% in net sales in constant currency further emphasizes the growth momentum Nokia has achieved this quarter. This positive revenue trajectory is likely to bolster investor confidence.

Net Income
Nokia's net profit marked a strong comeback in the quarter, which not only restores prior losses but demonstrates effective cost control and business strategy execution. Such improvements in net income can attract more investors or lead existing shareholders to hold on to their shares longer.

Free Cash Flow (FCF)
Looking forward, Nokia anticipates a free cash flow conversion from comparable operating profit between 50% and 80%. This outlook signals to investors that the company has the potential to generate meaningful cash flow, which is critical for funding future growth and returning value to shareholders.

Outlook
Nokia's projection of comparable operating profit between 1.9 billion euros and 2.4 billion euros for fiscal 2025 showcases optimistic growth expectations. Furthermore, the expected sales growth rate that outpaces the market and maintaining an operating margin at or above 13% indicates sustained operational efficiency and profitability potential going forward.

Stocks: NOK