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Nokia Q3 Results Prompt Analysts to Lower Forecasts

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Following the release of Nokia Corpโ€™s third-quarter financial results, analysts have revised their forecasts downward. The company reported a net sales decline of 20% year-on-year (15% in constant currency) to โ‚ฌ4.98 billion ($5.42 billion), falling short of the consensus of $6.20 billion. The earnings per share (EPS) came in at โ‚ฌ0.02, with a comparable EPS of โ‚ฌ0.05 ($0.05), missing the consensus estimate of $0.09.

Nokia reiterated its full-year 2023 net sales guidance of โ‚ฌ23.2 billion-โ‚ฌ24.6 billion, which is lower than the consensus estimate of $26.19 billion. The company expects to achieve a comparable operating margin of 11.5%-13.0%. To reach these targets, Nokia aims to implement gross cost savings of โ‚ฌ0.8 billion โ€“ $1.2 billion by 2026, resulting in a reduction in headcount from the current 86,000 employees to 72,000 โ€“ 77,000.

In response to the disappointing earnings announcement, the share price of Nokia declined by 0.2% and is currently trading at $3.2050.

Analystsโ€™ Price Target Revisions

Several analysts revised their price targets for Nokia following the earnings announcement:

  • Raymond James lowered the price target from $6 to $4.5. Analyst Simon Leopold maintained an Outperform rating on the stock.
  • Goldman Sachs cut the price target from $5.9 to $5.1. Analyst Alexander Duval maintained a Buy rating on the stock.

These revisions in price targets reflect analystsโ€™ updated expectations for Nokiaโ€™s performance based on the third-quarter results.

For further insights on market forecasts, you may also be interested in Union Pacificโ€™s latest analyst projections.

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