#Nokia beats expectations in Q4’16
This morning (8am CET+1) Finnish telecommunication giant Nokia published its fourth quarter and full year financial report for 2016. Suprisingly, Nokia beat EPS (earnings per share) market expectation of $0.08 by reporting an EPS of €0.11 ($0.12).
Nokia reported €6.7 billion net sales in Q4 2016, with an operating profit of €317 million (4.8% margin), climbing to €658 million after income tax benefits. The Q4 ’16 results represent 13% spike in revenue, and 476% operating profit increase compared to Q3’16. By segments, Nokia Networks’ net sales increased 14% QoQ (Quarter on Quarter), while Nokia Technologies’ net sales fell 12% QoQ.
For the full year 2016, Nokia posted net sales of €23.6 billion, with a negative operating profit of €1.1 billion. The negative profit was caused by the lower demand on the networks market, and integration costs for Alcatel-Lucent. Non-IFRS profit, that excludes ALU costs, was €1.25 billion in 2016.
Nokia debt as of the end last year was about €4 billion, while the workforce included about 100,000 people.
We are still waiting for the market reaction, and we’ll update the article with NYSE and HELSE stock price when the stock exchange opens, as well with the latest information from the earnings call expected to happen today.
Update: Nokia started trading on the Helsinki Stock Exchange with a near 4% soar in share price.