Nokia Clocks 16% Revenue Growth In Q4; Margin Expands Courtesy Nokia Tech; Boosts Dividend

  • Nokia Corp (NYSE: NOK) reported a fourth-quarter FY22 net sales growth of 16% year-on-year (11% in constant currency) to €7.45 billion.

  • Network Infrastructure sales grew 14% Y/Y in CC. Cloud and Network Services sales increased by 5% Y/Y in CC, while Nokia Tech rose 82% Y/Y as a long-term licensee exercised an option.

  • Mobile Networks sales grew by 3% Y/Y in CC with a meaningful shift in regional mix.

  • Also Read: Samsung, Nokia Ink New Multi-Year 5G Patent Deal

  • Margins: Gross margin expanded by 330 bps to 42.8%. Comparable gross margin increased by 340 bps to 43.5%, driven by the Nokia Technologies option exercise.

  • Operating margin increased by 30 bps to 11.8%, and the comparable operating margin rose by 130 bps to 15.5%.

  • EPS was €0.56, and comparable EPS was €0.16.

  • Nokia held €4.8 billion in cash and equivalents and generated €0.4 billion in free cash flow.

  • Dividend: The board proposed a dividend of €0.12 per share for FY22 (€0.08 per share for FY21).

  • Buyback: Nokia’s second €300 million phase of the share buyback program started in January 2023, and it will end at the latest by Dec. 21, 2023.

  • The first phase of the share buyback program, with a maximum aggregate purchase price of €300 million, started in February 2022 and ended in November 2022.

  • FY23 Outlook: Nokia pronounced a net sales guidance of €24.9 billion – €26.5 billion (2% – 8% growth in constant currency).

  • Nokia expects a comparable operating margin of 11.5% – 14.0%.

  • Price Action: NOK shares closed higher by 1.76% at $4.63 on Wednesday.

  • Photo Via Company

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Source: https://finance.yahoo.com/news/nokia-clocks-16-revenue-growth-101319849.html