Nokia Corporation (NYSE:NOK) is gearing up to unveil its third-quarter 2023 results on October 19 before the market opens. In the previous quarter, the company reported adjusted earnings of 8 cents per share, along with a year-over-year increase in revenues.
Nokia has been actively securing multiple deals in South Asia, capitalizing on the region’s increasing focus on digital transformation. The company’s introduction of various software solutions with cutting-edge AI capabilities, combined with the growing demand for its robust 5G portfolio, is anticipated to have contributed to year-over-year revenue growth in the third quarter. Let’s look at some key factors at play
Software Solutions and AI Integration
In the third quarter, Nokia launched the AVA Data suite on Google Cloud, aiming to enhance the development of software solutions with advanced AI and machine learning capabilities. This suite offers a comprehensive collection of proven data products, which, when integrated with Google Cloud, enriches communication service providers with a library of high-quality reusable networks and IT data packages. Additionally, Nokia introduced an AI-powered Enterprise Edge Charging Software Solution to enhance monetization capabilities for edge services across various sectors.
Strategic Partnerships
Nokia’s collaborations with telecom providers worldwide are likely to have positively influenced its third-quarter results. Partnerships with companies like Mediacom Communications in the U.S., Eastlink in Canada, and Globe Telecom in the Philippines have expanded its reach and likely contributed to revenue growth.
Focus on South East Asia
Nokia has been strengthening its presence in the Southeast Asia region, including agreements with NTT Ltd. in Thailand to support digitization efforts and Globe Telecom in the Philippines to expand 4G/5G coverage. These developments are expected to have bolstered Nokia’s top-line performance.
Product and Service Innovations
Nokia introduced several new products and services during the quarter, including the 25G PON starter kit solution to accelerate high-speed connectivity deployment for enterprises. They also unveiled Corteca, an enhanced home connectivity software for broadband devices, aimed at enhancing customer experiences and creating new revenue opportunities.
Network Infrastructure Products
Nokia launched an array of network infrastructure products and services through its ‘network-in-a-box’ program. These releases are likely to have had a favorable impact on the company’s performance in the third quarter.
Revenue Projections
- Mobile Networks: Estimated revenues of €2,553.4 million ($2,778.7 million).
- Network Infrastructure: Estimated revenues of €2,110.8 million ($2,297 million).
- Cloud & Network Services: Estimated revenues of €773 million ($841.2 million).
For the third quarter, the Zacks Consensus Estimate for Nokia’s total revenues stands at $6,356 million, indicating an increase from the prior-year quarter’s $6,290 million. However, the estimated adjusted earnings per share is 9 cents, slightly lower than the 10 cents reported in the previous year’s quarter.
Investors and analysts will closely watch Nokia’s earnings release to gauge whether the company can continue its top-line expansion and navigate the challenges in the telecommunications market.
Featured Image: Megapixl
