"The Good, the Bad, and the Ugly"
To put it in Mike Tyson’s words, “Everybody has a plan until they get punched in the mouth.” Chief Executive Operator (CEO) of Nokia Rajeev Suri’s announcement of the financial results of 3Q 2019 on October 24, 2019 was the “punch in the mouth” for Nokia: while the company reported net sales of EUR€5.7 billion (US$6.28 billion, corresponding to an increase by 3.6% quarter on quarter), it also announced a pause in paying a dividend to its shareholders in order to increase the company’s cash flow to cope with necessary investments into 5G technology that proved to be more costly than expected. As a result of this decision, and the lowering of 2019 and 2020 outlooks (to account for margin pressure, additional 5G investments, and additional digitalization investments), share price dropped by a dramatic 23% on October 24, when the quarterly results were announced, and has remained at this low level since then.
Now, one could argue that this is just another instance of the stock market overreacting, which shows its extreme focus on…
You must be a subscriber to view this ABI Insight.
To find out more about subscribing contact a representative about purchasing options.