Nokia misses financial targets for 2023 - share still up: analysis from a financial expert's perspective

Nokia misses financial targets for 2023 - share still up: analysis from a financial expert's perspective

According to a report by www.finanzen.net, the telecommunications equipment manufacturer Nokia no longer expects to achieve its annual targets. Negotiations over outstanding license fees at Nokia Technologies are not expected to be completed until 2024 and will contribute to business development.

Nokia shares traded significantly higher on the first day of the year, even though the company had met its financial targets for 2023 shortly before the end of the year. License renewal discussions could last until 2024, which is why Nokia expects to miss its 2023 targets. According to Citi analysts, Nokia has decided to prioritize long-term value over meeting fourth-quarter expectations. This is surprising given the company's update in mid-December.

This means that 2024 outcomes could benefit from the conclusion of negotiations. Financial forecasts for net sales, comparable operating margin and free cash flow are not expected to be achieved. This backlog could have implications for the market, the consumer and the industry.

Nokia also said it has no preliminary financial results as the reporting period has not yet ended. Quarterly results suggest a “significant improvement” in net sales, but are still weighed down by customer spending constraints. Additionally, Nokia expects its share of AT&T's revenue to decline in the coming years.

Overall, the outlook for Nokia is rather pessimistic due to ongoing negotiations over license fees and the expected failure to meet financial targets for 2023. This could lead to further increasing pressure on Nokia shares if negative estimates continue._failed