- Nokia (HE:NOKIA) Corp (NYSE: NOK) reported a second-quarter FY22 net sales growth of 11% year-on-year (3% in constant currency) to €5.87 billion.
- Network Infrastructure sales grew 12% Y/Y in CC with growth across all four businesses.
- Cloud and Network Services posted flat Y/Y growth in CC, while Nokia Tech declined 25% Y/Y, affected by expired licenses.
- Mobile Networks returned to growth with an increase of 1% Y/Y in CC amid supply chain constraints.
- Margins: The gross margin contracted by 80 bps to 40.2%. Comparable margin contracted 170 bps to 40.6% due to lower net sales in Nokia Tech.
- The operating margin expanded 50 bps to 9.6%. The comparable margin contracted 60 bps to 12.2%.
- EPS was €0.08, and comparable EPS was €0.10.
- Nokia held €5.5 billion in cash and equivalents and used €0.1 billion in free cash flow.
- Dividend: The board proposed a dividend of €0.02 per share.
- Outlook: Nokia reiterated FY22 net sales guidance of €23.5 billion - €24.7 billion (constant currency unchanged, adjusted for currency).
- Price Action: NOK shares traded higher by 7.02% at $5.03 in the premarket on the last check Thursday.
Read at Benzinga