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.
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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.
Nokiaheld €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.
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