Twollow
  • Tech
    How to Choose the Right Laptop

    How to Choose the Right Laptop for You

    IT Support Services

    Why You Need IT Support Services

    Managed IT Services

    Managed IT Services vs. Outsourcing: Here’s What You Need to Know

    Digital Marketing Trends

    How To Scale Your IT Team On A Budget

    Benefits Of Cloud Print Management In The New Era Of Work

    4 Benefits Of Cloud Print Management In The New Era Of Work

    Hybrid Events

    7 Top Practises for Hybrid Events

    VPS server

    Why You Might Want to Host Your Site on a VPS or VDS?

    Close up of a restaurant manager talking to the waiter

    Advantages of Using Technology in the Restaurant Industry?

    html

    How to choose the best HTML editor?

  • Apps
    spotify fraud

    Shopify Fraud Prevention Tips Every E-Commerce Business Owner Should Know

    Nintendo 3DS emulator

    11 Best Nintendo 3DS emulator for PC, Windows & Android

    play and win online

    6 Best User-friendly APPs to Play Online Lottery

    Design Canva Templates

    How to Design Canva Templates

    link building service

    Hack someone’s Instagram Password with Easy Tricks

    Buying Instagram Followers

    The Pros and Cons of Buying Instagram Followers

    mobile app business plan

    How to Create a Perfect Mobile App Business Plan?

    app development

    Why Should You Consider React Native App Development?

    Instagram app

     What is Instagram Monitoring 

  • How To
    solar panels

    Common Solar Panel Concerns and How to Deal With Them

    imei number

    How to Check IMEI Number?

    bong

    How do you manufacture a bong?

    Central heating

    DIY Guide: How To Install A Designer Radiator

    website

    Things That Might Be Wrong With Your Website And How To Fix Them

    design a business logo

    How to Design a Successful Business Logo

    How Live Streaming works

    How Live Streaming works – Everything You Need to Know

    live stream

    How to Live Stream on Twitch

    How Can Workout Make Life Easier

    How Can Workout Make Life Easier?

  • Business
    • All
    • Finance
    smart transportation with Motorway intersection

    Businesses That Require Flexible Transport Solutions

    Business Operations

    4 Ways in Which an IT Consultant Could Assist Your Business Operations

    Positive Reputation in the Building Industry

    3 Tips for Building a Positive Reputation in the Building Industry

    Become a Successful Entrepreneur

    The Top 6 Things to Do Today to Become a Successful Entrepreneur

    Buy Cryptocurrency

    What Is Dash Cryptocurrency And Its Use Cases In Today’s Economy

    Boost Traffic to Your Store

    Boost Traffic to Your Store: 5 Tips

    When to Refinance Your Student Loans

    When to Refinance Your Student Loans

    Influencing Modern Business

    4 Factors Influencing Modern Business Partnerships

    Credit Counseling Myths

    What are the different types of Credit Card you can avail in 2022?

  • Marketing
    Engagement Rate

    How To Calculate Engagement Rate: Meaning & Formula

    Tips to Compose a Top-Notch Case Study

    10 Tips to Compose a Top-Notch Case Study

    online social media online community

    9 Tips to Drive Traffic to Your Blog from Social Media

    social media pictures

    5 Tips for Improving Your Social Media Pictures

    Best Youtube Advertising Strategies For Small Businesses

    7 Best Youtube Advertising Strategies For Small Businesses

    Social Media Marketing Tips For Beginners

    4 Social Media Marketing Tips For Beginners

    affiliate marketing

    Affiliate Marketing for Beginners: 5 Tricks to Make It Easier

    b2b marketing strategy

    What Are the Best B2B Marketing Strategies to Use?

    Content Enough to Grow Your Online Traffic

    Is Writing Amazing Content Enough to Grow Your Online Traffic?

  • General
    Stop Sign

    What are the Requirements and Regulations of a Stop Sign?

    Nursing Jobs

    Five Nursing Jobs That You Need to Know About

    Plumbing Emergency

    Four Ways to Tell if It’s a Plumbing Emergency

    Need Of A Website For Your Dental Practice

    Need Of A Website For Your Dental Practice

    Merchant Account

    How Does A Merchant Account Assist CBD Businesses?

    https://www.gettyimages.com/detail/photo/spa-cosmetic-products-beauty-concept-royalty-free-image/1299954303

    How to Make the Most Out of Your Spa Day?

    trading

    Is Commodity Trading Good For Beginners

    spain

    How to choose the property of your dreams in Spain

    istanbul

    Apartments for wealthy foreigners in Istanbul

  • Reviews
    Development of Cryptocurrency

    A Crypto.com Overview

    Ophthalmology eyesight examination

    Red Light Therapy Devices for Eyes: Where to Buy

    text to speech

    Best Text to Speech Converters Reviewed

    air purifier

    Where Can You Find the Best Air Cleaner Pro Reviews?

    How to Choose a Cheap Hosting

    Liquid Web Reviews: A Look At A Reliable Hosting Company

    Ionic Training

    Get Ionic Training and Improve Your Career Options

    Learning Experience

    Salesforce DX myTrailhead to Customize the Learning Experience

    Best Web Hosting Services

    10 Best Web Hosting Services 2018

    Honey Chrome Extension Review

    Honey Chrome Extension Review – Is It Scam Or Real?

  • Featured
No Result
View All Result
  • Tech
    How to Choose the Right Laptop

    How to Choose the Right Laptop for You

    IT Support Services

    Why You Need IT Support Services

    Managed IT Services

    Managed IT Services vs. Outsourcing: Here’s What You Need to Know

    Digital Marketing Trends

    How To Scale Your IT Team On A Budget

    Benefits Of Cloud Print Management In The New Era Of Work

    4 Benefits Of Cloud Print Management In The New Era Of Work

    Hybrid Events

    7 Top Practises for Hybrid Events

    VPS server

    Why You Might Want to Host Your Site on a VPS or VDS?

    Close up of a restaurant manager talking to the waiter

    Advantages of Using Technology in the Restaurant Industry?

    html

    How to choose the best HTML editor?

  • Apps
    spotify fraud

    Shopify Fraud Prevention Tips Every E-Commerce Business Owner Should Know

    Nintendo 3DS emulator

    11 Best Nintendo 3DS emulator for PC, Windows & Android

    play and win online

    6 Best User-friendly APPs to Play Online Lottery

    Design Canva Templates

    How to Design Canva Templates

    link building service

    Hack someone’s Instagram Password with Easy Tricks

    Buying Instagram Followers

    The Pros and Cons of Buying Instagram Followers

    mobile app business plan

    How to Create a Perfect Mobile App Business Plan?

    app development

    Why Should You Consider React Native App Development?

    Instagram app

     What is Instagram Monitoring 

  • How To
    solar panels

    Common Solar Panel Concerns and How to Deal With Them

    imei number

    How to Check IMEI Number?

    bong

    How do you manufacture a bong?

    Central heating

    DIY Guide: How To Install A Designer Radiator

    website

    Things That Might Be Wrong With Your Website And How To Fix Them

    design a business logo

    How to Design a Successful Business Logo

    How Live Streaming works

    How Live Streaming works – Everything You Need to Know

    live stream

    How to Live Stream on Twitch

    How Can Workout Make Life Easier

    How Can Workout Make Life Easier?

  • Business
    • All
    • Finance
    smart transportation with Motorway intersection

    Businesses That Require Flexible Transport Solutions

    Business Operations

    4 Ways in Which an IT Consultant Could Assist Your Business Operations

    Positive Reputation in the Building Industry

    3 Tips for Building a Positive Reputation in the Building Industry

    Become a Successful Entrepreneur

    The Top 6 Things to Do Today to Become a Successful Entrepreneur

    Buy Cryptocurrency

    What Is Dash Cryptocurrency And Its Use Cases In Today’s Economy

    Boost Traffic to Your Store

    Boost Traffic to Your Store: 5 Tips

    When to Refinance Your Student Loans

    When to Refinance Your Student Loans

    Influencing Modern Business

    4 Factors Influencing Modern Business Partnerships

    Credit Counseling Myths

    What are the different types of Credit Card you can avail in 2022?

  • Marketing
    Engagement Rate

    How To Calculate Engagement Rate: Meaning & Formula

    Tips to Compose a Top-Notch Case Study

    10 Tips to Compose a Top-Notch Case Study

    online social media online community

    9 Tips to Drive Traffic to Your Blog from Social Media

    social media pictures

    5 Tips for Improving Your Social Media Pictures

    Best Youtube Advertising Strategies For Small Businesses

    7 Best Youtube Advertising Strategies For Small Businesses

    Social Media Marketing Tips For Beginners

    4 Social Media Marketing Tips For Beginners

    affiliate marketing

    Affiliate Marketing for Beginners: 5 Tricks to Make It Easier

    b2b marketing strategy

    What Are the Best B2B Marketing Strategies to Use?

    Content Enough to Grow Your Online Traffic

    Is Writing Amazing Content Enough to Grow Your Online Traffic?

  • General
    Stop Sign

    What are the Requirements and Regulations of a Stop Sign?

    Nursing Jobs

    Five Nursing Jobs That You Need to Know About

    Plumbing Emergency

    Four Ways to Tell if It’s a Plumbing Emergency

    Need Of A Website For Your Dental Practice

    Need Of A Website For Your Dental Practice

    Merchant Account

    How Does A Merchant Account Assist CBD Businesses?

    https://www.gettyimages.com/detail/photo/spa-cosmetic-products-beauty-concept-royalty-free-image/1299954303

    How to Make the Most Out of Your Spa Day?

    trading

    Is Commodity Trading Good For Beginners

    spain

    How to choose the property of your dreams in Spain

    istanbul

    Apartments for wealthy foreigners in Istanbul

  • Reviews
    Development of Cryptocurrency

    A Crypto.com Overview

    Ophthalmology eyesight examination

    Red Light Therapy Devices for Eyes: Where to Buy

    text to speech

    Best Text to Speech Converters Reviewed

    air purifier

    Where Can You Find the Best Air Cleaner Pro Reviews?

    How to Choose a Cheap Hosting

    Liquid Web Reviews: A Look At A Reliable Hosting Company

    Ionic Training

    Get Ionic Training and Improve Your Career Options

    Learning Experience

    Salesforce DX myTrailhead to Customize the Learning Experience

    Best Web Hosting Services

    10 Best Web Hosting Services 2018

    Honey Chrome Extension Review

    Honey Chrome Extension Review – Is It Scam Or Real?

  • Featured
No Result
View All Result
Twollow
No Result
View All Result

This is why Nokia is no longer one of the best stocks in the market

According to some investors

by Jasmine Otto
May 20, 2021
0
nokia stock
Share on FacebookShare on Twitter

Nokia Corp. (NYSE: NOK) looks to boost margins in a moderate growth environment in coming years and plans to reduce headcount while executing a more focused approach to its target markets. The company conducted a virtual Capital Markets Day recently and new CEO Pekka Lundmark laid out the company’s plan going forward.

On the way to its 2023 growth and margin goals, Nokia will cut up to 10,000 jobs over an 18-24-month period while shifting investment into growth areas. The company reaffirmed its 2021 outlook which includes midpoint sales guidance of approximately 21.2 billion euros, down from revenue of 21.9 billion euros for 2020.

Off the lower base, adjusted operating margin was guided in a range of 7%-10%, compared with the 9.6% generated in 2020. Nokia expects to be free cash flow positive in 2021. By 2023, Nokia looks to grow faster than its addressable market, to raise its adjusted operating margin to the 10%-13% range, and generate ‘clearly positive’ free cash flow.

Nokia has seen its telecom equipment market share decline in recent years. Huawei has been the big share-gain winner since 2014, but Huawei’s growth appears to be slowing as more nations exclude the Chinese gear market from their public networks. Ericsson has grown in recent years and has now pulled level with Nokia in overall equipment sales, even though Ericsson has much less wireline presence than Nokia.

The new CEO, who took over in September 2020 from long-time leader Rajeev Suri, has inherited a difficult operational challenge in the mobile networks space. For 2020, network revenue declined 7% and within that, mobile infrastructure sales were down 8% year-over-year. Whereas Nokia’s global revenue declined 5% in 4Q20, sales for rival Ericsson rose 5%. Following capital markets day, investors now have a clearer picture of the challenges ahead.

RECENT DEVELOPMENTS

On 3/18/21, Nokia laid out its multi-year strategy under new leadership. The company outlined how it intends to speed up transformation in order to improve profitability. The plan, if executed, will enable Nokia to deliver consistent double-digit comparable (adjusted) operating margins in 2023.

Another opportunity will be connected digital enterprise, resulting in significant growth in Nokia’s enterprise opportunity.

The company will incorporate sustainability into its operating roadmap and strategy. A key element of the Reset phase is moving away from being an end-to-end provider, which has been a ‘cornerstone’ of Nokia’s market positioning.

The groups are Mobile Networks; Network Infrastructure. The groups have shared executives as well, in areas including customer experience, finance, legal, strategy & technology, people, and corporate affairs. The group structure is designed to serve the over-arching goals of securing full portfolio competitiveness in mobile and reducing the cost base.

The second phase, Accelerate, is for the 2022-time frame. The company will accelerate competitiveness and aim to expand margins through technology leadership. Accelerate goals include increasing digitalization of operations; enhancing margins through improved competitiveness and technology investments, and creating growth opportunities through new products and services.

The final phase, Scale, will feature a restructured Nokia setting its sights on new value resulting from next-generation critical networks. These include virtual radio access networks (v-RAN), cloud-native software, as-a-service business models, and other unfolding opportunities.

Building on that, the new Nokia will focus on technology leadership in the four business units.

CFO Marco Wiren addressed the restructuring that management sees as needed to attain new growth and margin goals. Along with creating a leaner corporate center, restructuring will be led by the business groups. The goal will be to lower the annual cost base by 600 million euros annually by 2023. As many as 10,000 employees will leave the company over an 18-24 month timeframe.

The CFO reiterated 2021 guidance and laid out targets for 2023. For all of 2021, Nokia is guiding for revenue of 20.6-21.8 billion euros, which at the 21.2 billion midpoints would be down 3% in IFRS from 2020 levels. Off the lower base, adjusted operating margin was guided in a range of 7%-10%, compared with the 9.6% generated in 2020. Nokia expects to be free cash flow positive in 2021 and to deliver return on invested capital (ROIC) of 10%-15%, vs. 11.9% for 2020.

By 2023, Nokia looks to grow faster than its addressable market, which is expected to be growing in the low single-digit range at that time. At the business group level, non-IFRC operating margin targets are 5%-8% for mobile networks; 9%-12% for network infrastructure; 8%-11% for cloud and network services; and 75% for Nokia Technologies, which includes IP licensing.

The overall operating margin target range for 2023 is 10%-13%. Nokia also believes it can generate ‘clearly positive’ free cash flow, and deliver ROIC of 15%-20%. Nokia also used the forum of investor day to celebrate some key wins. These include a five-year contract with AT&T to provide 5G network implementation in the C-band, which is situated between 2.4 GHz and 5.0 GHz. C-band was formerly used by satellite TV providers; given that AT&T owns DirecTV, this should be a profitable use of already owned spectrum.

Another collaboration cited by Nokia was a partnership with Microsoft on cloud solutions for the enterprise. Nokia has seen its telecom equipment market share decline in recent years. According to data from Dell’Oro, Huawei led with a 31% share at year-end 2020, while Nokia and Ericsson were even with 15% each.

Huawei has been the big share-gain winner since 2014, growing from 24% share in 2014. But Huawei’s market share may be capped going forward as more nations exclude the Chinese gear market from further equipment in their public networks. In 2014, Nokia had a 24% share, while Ericsson’s was about 16%. After several years of losing share to Huawei, Ericsson has grown in the past few years and has now pulled level with Nokia in overall equipment sales.

That is despite the fact that Ericsson has much less wireline presence than Nokia and is primarily a provider of mobile network infrastructure. Overall, Ericsson appears to be best-positioned in this global arms race, given its strong presence in mobile as excitement builds around 5G; Huawei’s political pressures; and Nokia’s struggles, such as losing 5G share at Verizon to Samsung.

Nokia has an extensive global presence, strong legacy customer relationships, leading technology and IP, and financial strength. The change at the top is positive, but it also signals that Nokia needs to reinvigorate its 5G efforts. Following capital markets day, investors now have a clearer picture of the challenges ahead. On balance, we believe that a HOLD rating remains prudent on the NOK ADSs.

EARNINGS & GROWTH ANALYSIS

Nokia took extensive restructuring and impairment charges in 4Q20.

For all of 2021, Nokia is guiding for revenue of 20.6-21.8 billion euros, which at the 21.2 billion midpoints would be down 3% in IFRS from 2020 levels. Our initial non-IFRS EPS projection for 2022 is $0.23 per diluted ADS. As 2021 progresses we will review our 2022 outlook, which is highly conservative.

FINANCIAL STRENGTH & DIVIDEND

The company did not issue a dividend for 2020 and given the imperative of repairing the mobile networks business. The company will review its progress and based on that progress, that board will consider a dividend for 2021. At this time, we continue to expect no dividend for 2021 nor 2022.

Jasmine Otto

Jasmine Otto

Jasmine has over 17 years of experience in Blogging, Brand Development, and part-time content writing including Tech, Advertising, Media, and Marketing Niches. She has worked for companies such as Australian Radio Network and Universal McCann and has a wealth of experience under her belt when it comes to building brands.

Related Posts

smart transportation with Motorway intersection
Business

Businesses That Require Flexible Transport Solutions

Although the world has become more connected through digital technology, this doesn't make businesses any less reliant on physical transportation....

by Tom Fogden
May 27, 2022
Business Operations
Business

4 Ways in Which an IT Consultant Could Assist Your Business Operations

The world of technology changes rapidly, and if you want to keep up with these developments, you could think about...

by John Morris
May 26, 2022
Positive Reputation in the Building Industry
Business

3 Tips for Building a Positive Reputation in the Building Industry

Because the business industry is highly competitive, launching a successful company and building a positive reputation for yourself as a...

by John Morris
May 26, 2022
Become a Successful Entrepreneur
Business

The Top 6 Things to Do Today to Become a Successful Entrepreneur

Do you feel starting and running a business is a piece of cake? Well, it's pretty tough. Many entrepreneurs think...

by John Morris
May 25, 2022

Recommended.

SEO tools

A Better SEO Will Enable You to Make the Long Haul

March 30, 2019 - Updated on August 5, 2021
Should I Choose a Curved or Flat Television

Should I Choose a Curved or Flat Television

April 28, 2021
Digital Marketing

6 Digital Marketing Tips your Business can’t Afford to Ignore

October 11, 2021 - Updated on March 15, 2022
20 ft and 40 ft Container

How Much Weight is Allowed in a 20 ft and 40 ft Container?

February 13, 2021 - Updated on August 23, 2021
interior design trends 2021

10 Interior Design Trends to Look Forward to in 2021

January 30, 2021 - Updated on December 7, 2021
Education Of The Future

How The Education Of The Future Will Look Like

November 6, 2019 - Updated on June 24, 2021

Twollow is one of the leading tech and business blogs, that is dedicated towards updated Technology & Business news, reviews, Apps, how-to, smart tricks, and tweaks.

Follow Us

Categories

  • Apps
  • Business
  • Education
  • Featured
  • Finance
  • General
  • How To
  • Marketing
  • Reviews
  • Security
  • Tech
  • Uncategorized

Top Posts & Pages

  • 100+ Free Premium Minecraft Accounts & Passwords (Tested 2022)
    100+ Free Premium Minecraft Accounts & Passwords (Tested 2022)
  • How to Get Free Virtual Phone Number for WhatsApp Installation
    How to Get Free Virtual Phone Number for WhatsApp Installation
  • How Much Weight is Allowed in a 20 ft and 40 ft Container?
    How Much Weight is Allowed in a 20 ft and 40 ft Container?
  • Voice2V.com - Expand the Boundaries of Audio with Voice2V
    Voice2V.com - Expand the Boundaries of Audio with Voice2V

Recent Posts

Engagement Rate

How To Calculate Engagement Rate: Meaning & Formula

May 28, 2022
smart transportation with Motorway intersection

Businesses That Require Flexible Transport Solutions

May 27, 2022
How to Choose the Right Laptop

How to Choose the Right Laptop for You

May 27, 2022
  • About Us
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • Disclaimer
  • Cookie Privacy Policy

No Result
View All Result
  • Home
  • Security