Helsinki, Finland – Nokia Oyj (NYSE: NOK) faced a 2.63% decline year-to-date ahead of its first-quarter results, leaving shareholders with modest expectations for the company’s performance. The recent track record has shown negative returns following previous earnings previews, indicating a cautious sentiment among investors. With the release of the first-quarter results, there are key considerations for shareholders to weigh.

The first quarter of 2024 brought challenges for Nokia, with a 19% decrease in net sales year-over-year. Despite facing a tough macro environment, the company’s stock price remained stable in pre-market trade. While Network Infrastructure showed positive operating margins, other sectors like Mobile Networks experienced significant declines.

Nokia Technologies notably doubled its net sales, benefiting from key licensing deals that boosted revenue. CEO Pekka Lundmark highlighted the unit’s performance and outlined plans to further increase licensing net sales in the medium term. Despite challenges in Network Infrastructure and Mobile Networks, Nokia remains focused on growth opportunities in other areas.

The network business, Nokia’s largest segment by net sales, faced disappointing trends with a focus on improving order trends and operational margins. Mobile Networks struggled with declining net sales, reflecting broader challenges in the telecom sector. Cloud and Network Services also saw a decline in net sales, highlighting the competitive landscape in cloud services.

In the face of country risks in India and North America, Nokia experienced a decline in regional sales impacting overall performance. While management remains optimistic about future demand trends, challenges persist in key markets. The company’s dividend offering, while modest, is a factor for income investors to consider given past trends.

Looking ahead, Nokia’s stock grades indicate fair growth and momentum, with potential for improvement based on sales prospects. Valuation remains solid, providing stability amid market fluctuations. Shareholders are advised to monitor customer spending patterns in the telecom industry to gauge Nokia’s future performance.