From CNBC:

Nokia announced a two-year 600 million euro share buyback after reporting a significant decline in profit in 2023. The company’s stock was up 7% after the news. Nokia’s fourth-quarter net sales fell 23% to 5.7 billion euros, with comparable operating profit down 27% to 846 million euros. CEO Pekka Lundmark cited a shift in customer behavior and a challenging environment. The company expects a comparable operating profit of 2.3-2.9 billion euros in 2024, down from analyst estimates of around 2.4 billion euros. Telecommunications operators cutting back on spending has hurt Nokia, with sales in its biggest division, Mobile Networks, falling 17% in the fourth quarter. Nokia saw a 25% drop in shares after U.S. mobile carrier AT&T chose Nokia rival Ericsson to build its new 5G network. The company is now lowering its operating margin target to at least 13% from at least 14% by 2026. The warnings about the 2024 outlook come after Nokia’s rival, Ericsson, also reported a fall in sales and operating profit for the fourth quarter and signaled a challenging year ahead.



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