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Network giant Nokia (NOK) has announced strong growth for fiscal 2022. Additionally, the company appears confident in its near-term performance. Given bullish analyst expectations, he may be worth buying NOK this month. read more.
Despite macroeconomic headwinds, Finland-based leading network solutions provider Nokia Oyj (knock) delivered strong results for the full year. Net sales increased 6% year-over-year at constant currency in fiscal 2022 driven by growth in all four business groups, particularly Network Infrastructure, which grew 10%.
NOK’s comparable operating profit in the fourth quarter increased to €1.15 billion ($1.26 billion) from last year’s €908 million ($970.18 million). Exceeds average forecast of €924.6 million ($987.92 million) Of 10 analysts surveyed by Refinitiv. Net sales rose 16% to his €7.45 billion ($7.96 billion), beating estimates of €7.11 billion ($7.59 billion).
Analysts forecast net sales of €25.5 billion ($27.25 billion) in 2023, but the company expects full-year 2023 net sales to fall between €24.90 billion ($26.60 billion) and €26.50 billion. ($28.31 billion). 2% to 8% growth in constant currency.
In addition, the company has completed the first phase of its buyback program, repurchasing 63963583 shares at an average price per share of approximately €4.69. The second phase of the €300 million ($320.54 million) share repurchase program will begin in January and end by December 2023.
Additionally, NOK pays an annual dividend of $0.08, yielding 1.74% at current market prices, higher than its four-year average dividend yield of 1.17%.
The company’s stock is up 2% over the past five days, closing its last trading session at $4.77. There is his 60 month beta version of 0.63.
Here’s what will shape NOK’s performance in the near future:
recent positive developments
On February 20th, NOK announced the launch of AVA Customer and Mobile Network Insights. It is a cloud-native analytics software solution that simplifies the collection and analysis of 5G network data and provides powerful and cost-effective analytics capabilities to Communication Service Providers (CSPs). .
The launch leverages NOK’s experience and leadership in analytics to enable CSP efforts to increase operational efficiency, improve network performance and enhance customer experience.
On February 14, NOK and Kyndryl Holdings, Inc.KDs) is the world’s largest IT infrastructure service provider with a global network and edge partnership focused on developing and delivering industry-leading LTE and 5G private wireless services and Industry 4.0 solutions to customers worldwide. Announced extension and expansion for 3 years.
KD and NOK will establish a global network and edge computing alliance in February 2022. Partnerships have grown exponentially, with over 100 of his engagements with global companies ranging from advisory or testing in 24 countries to pilots to full implementation.
On January 23rd, NOK announced that it had signed a new cross-licensing 5G patent agreement with Samsung. Samsung will now pay Nokia for multiple years starting January 1, 2023, ending with the expiration of the previous contract. 2022.
In the fourth quarter ended December 31, 2022, NOK’s net sales increased 16.1% year-on-year to €7.45 billion ($7.96 billion). Gross profit was €3.19 billion ($3.41 billion), up 25.8% year-on-year. Profit was €3.15 billion ($3.37 billion), up 363.5% year-on-year, and EPS was €0.56, representing an increase of 366.7% year-on-year.
NOK’s net profit margin for the last 12 months was 17.06%, 490.8% higher than the industry average of 2.89%. His EBIT margin for the last 12 months was 10.71%, 76.7% above the industry average of 6.06%.
In addition, the company’s trailing 12-month ROCEMoreROTC, and ROTA of 21.71%, 6.66%, and 9.90% are higher than industry averages of 4.75%, 2.97%, and 1.36%, respectively.
In terms of futures non-GAAP P/E, NOK is currently trading at 10.21x, which is 50.9% lower than the industry average of 20.78x. Its 0.51x forward non-GAAP PEG ratio is 68.6% lower than the industry average of 1.62x.
The forward price/book value ratio of 1.10 is 72.6% lower than the industry average of 4.03x and the forward EV/EBIT ratio of 6.61 is 61.5% lower than the industry average of 17.20.
Favorable Analyst Quote
Street expects NOK to generate $6.15 billion in revenue for the quarter ending March 2023, representing 9.5% year-over-year growth. The company’s EPS for the quarter is expected to be $0.08, an increase of 10.9% from the same period last year.
NOK’s EPS and earnings are expected to grow 7.7% and 1.2% year-over-year to $5.0 billion and $27.84 billion in fiscal 2024.
POWR Rating Reflects Solid Outlook
NOK has an overall B rating and is equivalent to our own purchase. POWR rating system. The POWR Rating is calculated by considering 118 individual factors, with each factor being optimally weighted.
Our proprietary rating system also evaluates each stock based on eight different categories. NOK has his A grade for value, in sync with a lower valuation multiple than the industry.
A B grade for sentiment is in line with good analyst expectations.
in B rank Technology – Telecommunications/Networking In the industry, NOK ranks 12th out of 49 stocks.
click here To see NOK’s additional POWR ratings (Growth, Stability, Quality, and Momentum)
NOK should generate strong cash flow and a year-long share buyback program should enhance shareholder returns.
Additionally, the company sees a year of growth in 2023 despite lingering macroeconomic headwinds.
And Wall Street analysts expect the stock to hit $7.05 soon. Shows a potential uplift of 47.8%So NOK may be the best buy right now.
How does Nokia Corporation (NOK) compare to its peers?
NOK has an overall POWR rating of B. You can also check out other stocks with an A (strong buy) rating in the Technology – Telecommunications/Networks industry: PC-Tel, Inc. (PCTI), Extreme Networks, Inc. (EXTR), and Cisco Systems, Inc. (CSCOMore).
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NOK shares were unchanged in pre-market trading on Tuesday. Year-to-date, NOK is up 3.11% of him, while the S&P 500 index is up 6.49% of him over the same period.
About the author: Kritika Sarmah
Her interest in high-risk instruments and passion for writing led Kritika to become an analyst and financial journalist. She has a Bachelor of Commerce degree and currently she is working on the CFA program. With her groundbreaking approach, she aims to help investors identify untapped investment opportunities.