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Nokia Share Price Just Crashed Almost 20%. Here’s Why

Practice Stock Trading
Updated: 29 October 2020

Shares of Nokia (HEL: NOKIA) fell almost 20% on Thursday after the Finnish telecom giant slashed its 2020 operating margin guidance.

Nokia now expects the full-year operating margin to come at 9%, lower from prior 9.5%. As for the next year, the firm forecasts 7-10%. The company reported in-line EBITDA at 0.05 euros per share for the quarter ending September.

The full-year profit outlook range is also cut by 0.02 euros to a midpoint of 0.23 euros per share.

“We expect to stabilise our financial performance in 2021 and deliver progressive improvement towards our long-term goal after that,” CEO Pekka Lundmark said in a statement.

“We have lost share at one large North American customer, see some margin pressure in that market, and believe we need to further increase R&D investments to ensure leadership in 5G.”

The telecom giant also announced a reorganization of its business to focus on four key areas: mobile networks, IP and fixed networks, cloud and network services and Nokia technologies.

Nokia stock price dropped nearly 20% on slashed outlook October 2020

Nokia share price fell to 2.82 euros to revisit the pandemic lows from April. Shares of Nokia are now down over 20% on the weekly basis.

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