Nokia Reports Strong EPS Amidst Revenue Challenges in Q4 2024

Nokia's Q4 2024 results show an EPS of 0.18 euros, exceeding estimates but revenue fell short. The results reflect a solid performance in profitability, indicating investor interest as the company navigates market conditions.

Date: 30-01-2025

AI Rating: 6

Earnings Per Share (EPS)
Nokia reported an EPS of 0.18 euros for Q4 2024, which surpassed analyst expectations of 0.14 euros. This represents an impressive 80% increase from 0.10 euros in Q4 2023, indicating strong profitability and provided a boost to investor sentiment concerning its earnings capabilities.

Revenue Growth
The company's revenue for the quarter was 5.983 billion euros, slightly lower than the analysts' estimate of 6.006 billion euros. Although this shows an increase of 10.5% from 5.416 billion euros in Q4 2023, the failure to meet revenue expectations suggests some challenges in certain market segments.

Operating Margin
Nokia's operating margin improved to 19.1%, up from 15.3% in Q4 2023, equating to a 3.8 percentage point increase. This improvement in profitability, despite revenue challenges, reflects effective cost management and pricing strategies, which will interest investors focusing on profitability ratios.

Overall, while Nokia demonstrated strong EPS growth and improved operating margins, the slight revenue miss could impact stock prices as investors weigh the potential for sustained growth against the backdrop of market challenges. Additionally, significant growth in key segments including network infrastructure and Nokia Technologies, with notable increases in net sales due to licensing agreements, further supports positive investor outlooks.

Investors should remain aware of Nokia's dependence on macroeconomic conditions as the company plans continued investments in 5G and data center opportunities, aiming to capitalize on favorable trends in telecommunications and technology.

Stocks: NOK