Finland-based Nokia (FR:NOKIA) is reportedly trimming jobs in China and Europe as part of its restructuring efforts to reduce costs. According to Reuters, Nokia has let go of nearly 2,000 employees, representing about 20% of its workforce in Greater China, and plans to cut 350 more jobs in Europe. In 2023, the company announced plans to eliminate up to 14,000 jobs to achieve savings of €800 million to €1.2 billion by 2026.
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Nokia shares on Euronext Paris gained 3.51% as of writing. Additionally, the stock is trading up by nearly 4% on the local exchange in Finland.
Nokia is a global company involved in the manufacturing of mobile devices and network infrastructure.
Nokia Reports Mixed Q3 Results
Nokia reported its third-quarter results yesterday, showing mixed figures with signs of demand recovery in certain areas. The company reported a 7% decline in its quarterly sales in constant currency to €4.33 billion, falling short of the analysts’ estimate of €4.76 billion. The company stated that growth in its Network Infrastructure and Nokia Technologies was balanced out by a slowdown in Mobile Networks, primarily driven by weaker performance in India.
On the plus side, operating profit in Q3 increased by 9% year-over-year to €454 million on a comparable basis. Additionally, profit during this period grew by 22% to €358 million as compared to Q3 2023. This was mainly driven by the company’s continuous efforts on cost control.
Moving forward, Nokia is optimistic about the recovery of its Network Infrastructure business, especially in North America. Overall, the company projects a comparable operating profit of €2.3 to €2.9 billion and free cash flow conversion from that profit ranging between 30% and 60% in 2024.
Is Nokia Stock a Good Buy Now?
According to TipRanks, NOKIA stock has been assigned a Hold rating with an average price target of €3.79. The consensus rating is based on two Buy, seven Hold, and two Sell recommendations. The Nokia share price target is 6.23% below the current price level.
