Nokia (NOK) Stock Price and Forecast: Earnings miss sees shares slump – FXStreet

Nokia (NOK) Stock Price and Forecast: Earnings miss sees shares slump – FXStreet

  • Nokia released earnings before the market opened on Thursday.
  • NOK stock falls as revenue misses estimates.
  • Nokia remains a retail meme favourite, but interest in the sector has been waning.

Nokia (NOK) shares are struggling this morning after the company beat on EPS but missed on revenue. The stock is a former meme darling and was caught up in the GameStop (GME) melee last year. Nokia shares currently trade at $5.75, but last year hit a high of $8.81 during the GameStop (GME) rally.

Nokia Stock News

Earnings per share came in at $0.13 versus the $0.11 estimate. Revenue was $6.41 billion though, which was below estimates for $6.48 billion. The company did issue guidance in January of margins hitting 12.5% at the midpoint. Nokia also has proposed after earnings this morning that it intends to pay a dividend of $0.08 per share and to embark on a $600 million share buyback program. The buyback program is to last two years. We do not have details on whether the buyback is to be split evenly over the 2 years or if some discretion can be used.

Nokia shares are currently down 4% in the premarket after the earnings. The NASDAQ is down 2%, so this means an underperformance of 2% for NOK stock.

Nokia Stock Forecast

Nokia (NOK) stock has been rangebound with a double top in evidence at $6.30 and a double bottom at $5.26. Both levels are strong supports and resistance. Below $5.27 there is a volume gap until $4.10. There is no strong trend identifiable here, just choppy trading. Earnings are more likely in our view to set a new bearish trend as that is the overall tone of the equity market currently.

Risk assets are again struggling, and our risk barometer is in the red. This includes big tech being down, the NASDAQ down, yields and VIX both up and the dollar higher. This will likely see all assets struggle, but riskier ones especially will see falls. Nokia still falls into that category as it has a strong retail following and tends to be volatile. 

Nokia chart, daily

 

 


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Source: https://www.fxstreet.com/news/nokia-nok-stock-price-and-forecast-earnings-miss-sees-shares-slump-202202031312