- Nokia Corp (NYSE:NOK) reported a first-quarter FY22 net sales growth of 5% year-on-year (1% in constant currency) to €5.35 billion.
- Network Infrastructure grew 9% Y/Y in CC, driven by solid demand in Fixed and Submarine Networks.
- Cloud and Network Services grew 5% Y/Y in CC with strength in Core Networks.
- Mobile Networks declined 4% Y/Y in CC due to supply chain constraints.
- Nokia Technologies declined 17% Y/Y in CC as licenses expired in 2021.
- Margins: The gross margin expanded by 270 bps to 40.6%. Comparable margin expanded 250 bps to 40.7%.
- The operating margin contracted 190 bps to 6.6%. The comparable margin was flat at 10.9% as lower other operating income and higher R&D investments offset the improved gross margins.
- EPS was €0.04 versus €0.05 last year.
- Nokia held €4.9 billion in cash and equivalents and generated €0.3 billion in free cash flow.
- Dividend: The board proposed a dividend of €0.02 per share.
- CEO Pekka Lundmark said, "Overall, Q1 was a strong start for the year both in terms of net sales and profitability. The demand environment remains strong, and while supply chain and inflation challenges remain, we are confident we can deliver our 2022 outlook and continue to make good progress towards our long-term targets."
- Outlook: Nokia sees FY22 net sales of €22.9 billion - €24.1 billion in CC.
- Price Action: NOK shares closed lower by 0.98% at $5.04 on Wednesday.
