Nokia Oyj (NYSE:NOK) has announced net third quarter sales (Q3) of $6.27 billion. The Finnish Telecom network equipment maker made the announcement on October 25 alongside news of thousands of job cuts in a bid to control its expenditures.
The company posted mediocre first and second quarter results and stakeholders were hoping that things would change for the better in the third quarter. The company is embarking on an annual cost saving program aimed to raise 700 million Euros by the end of 2020 through a global job cuts.
Nokia’s cost saving schemes
Nokia will complete another cost saving program in 2018 that was aimed at saving 1.2 billion euros. “The plan we are announcing today is the logical step to take as the completion of our Alcatel-Lucent-related cost saving program draws near,” Nokia’s President and CEO Rajeev Suri.
Nokia’s Q3 earnings surpassed Reuters’ speculation by a small margin; 5.5 billion euros (Nokia’s actual Q3 results) against 5.4 billion euros (Reuters’ speculation). However, the results have justified the company’s previous view that things were going to look good for the company stating this year’s Q2.
Nokia’s networking services will be expected to go up in subsequent quarters as the company intensifies its outreach. Recently, Nokia signed a deal to become the Original Equipment manufacturer (OEM) and technology partner for public safety projects for India’s state-backed Bharat Sanchar Nigam Limited (BSNL).
Banking on 5G’s potential
The company’s networking sales were not that impressive probably because of tough competition from similar providers like Huawei and Ericsson. Nonetheless, investors are not infuriated by the results as they hope that demand for the company’s 5G network will turn things around. As at the time of this publication, Nokia’s shares rose more over 17% year-to-date.
The race for 5G networks is on and, major corporations including Microsoft are hopeful that the new network will earn them big. The nations of America and China are going big on this new network provision. Each nation hopes to be the global leader of the wireless network and leverage on the economic and security benefits that comes with 5G.
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.