Trending: Nokia, Ericsson Shares Tumble
14 Julho 2023 - 7:41AM
Dow Jones News
1009 GMT - Nokia and Ericsson are among the most mentioned
companies across news items over the past three hours, according to
Factiva data, with both of their shares falling after updates.
Nokia has lowered its full-year sales guidance and narrowed its
operating margin outlook due to weaker demand in its network
infrastructure and mobile networks businesses, given a tougher
macroeconomic environment and as customers work through built-up
inventory. Ericsson said second-quarter sales in North America were
down 50%, and that it expects trends and market mix to continue
into the third quarter. It added that third quarter Ebita margin is
expected to be in line with, or slightly below the second quarter.
Citi analysts wrote that Nokia's warning is directionally similar
to Ericsson's, although the magnitude of change for Nokia is
greater as its full-year guidance had anticipated greater
improvement in 2H. "The telecom equipment market is facing stronger
headwinds than we anticipated, in particular in the key U.S.
market, where inventory digestion and weaker deployments are
leading to greater pressure on near-term revenue." Any fundamental
recovery looks delayed into 2024, Citi says. Nokia shares are
currently down 8.35%, while Ericsson shares are down 7.8%. Dow
Jones & Co. owns Factiva. (ian.walker@wsj.com.)
(END) Dow Jones Newswires
July 14, 2023 06:26 ET (10:26 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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