Nokia Corporation (NYSE:NOK) is set to announce its second-quarter 2023 results on July 20. The company expects increased revenues, driven by various factors such as its comprehensive portfolio, technological advancements, and strong demand for its solutions. This article will delve into the key factors contributing to Nokia’s anticipated growth in Q2.

Factors at Play

Strategic Partnerships and Deal Wins: Nokia recently secured a multi-year patent agreement with Apple, allowing the tech giant to leverage Nokia’s 5G portfolio. Additionally, a partnership with Zain in Jordan for network infrastructure modernization is expected to positively impact Nokia’s results. The collaboration with Citymesh in Belgium to introduce the Nokia Drone Networks platform and the collaboration with Keysight for sub-THz spectrum testing for 6G networks are further developments contributing to Nokia’s growth.

Enhanced Solutions and Upgrades: Nokia’s upgrade to its Fixed Network SaaS suite, offering improved operational efficiency to service providers, is expected to generate additional revenue. The introduction of AI-powered solutions in the AirScale baseband portfolio will also contribute to performance enhancement and increased capacity in mobile networks.

Expanded Customer Base: Nokia’s collaboration with MetaLINK to accelerate fixed wireless broadband connectivity in rural areas in the U.S. and the three-year contract with Virgin Media O2 in the UK for network modernization aim to expand Nokia’s customer base and provide reliable connectivity to end-users.

Revenue Expectations

Revenue estimates for Nokia’s Mobile Networks segment stand at €2,531.9 million ($2,755.9 million), while estimates for the Network Infrastructure segment are €2,144 million ($2,333.7 million). The Consensus Estimate for total revenues indicates an increase from the prior-year quarter, totaling $6,450 million.

Earnings Projection:

While the Consensus Estimate for adjusted earnings per share is 8 cents, reflecting a decline from the previous year, the company’s positive revenue outlook suggests a potential for earnings growth.

Conclusion

Nokia anticipates higher revenues in the second quarter due to its strong market presence, strategic partnerships, and technological advancements. While earnings expectations may not exceed estimates, the company’s revenue growth potential indicates a positive trajectory. Investors should closely monitor Nokia’s upcoming earnings report for a comprehensive evaluation of its performance.

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