Nokia NOK Q2 2025 Earnings Preview Upside Potential on Strong Buy Ratings

Generated by AI AgentAinvestweb
Monday, Jul 21, 2025 10:27 pm ET1min read
Aime RobotAime Summary

- Nokia reports Q2 2025 earnings on July 24, projecting $0.07 EPS (vs. $0.048 prior quarter) and $4.6B revenue (vs. $4.5B estimate).

- Analysts maintain "Strong Buy" rating with $6.6 price target, anticipating 38.95% stock growth amid 11% Network Infrastructure growth.

- Q1 2025 showed $4.39B revenue but $-60M net loss ($-0.01 EPS), highlighting profitability challenges despite revenue strength.

- Strategic expansion in Optical Networks and market recovery drive cautious optimism, though recent losses pose upside risks.

Forward-Looking Analysis
Nokia is set to release its Q2 2025 earnings on July 24, with expectations of an EPS of $0.07. This follows a previous performance where the company reported an EPS of $0.048, exceeding the market's expectation of $0.034. Analysts hold a "Strong Buy" consensus rating for , with an average price target of $6.6, projecting a 38.95% increase in stock price over the next year. The company's revenues are also anticipated to remain robust, following a previous quarter where they surpassed estimates with $4.6 billion in revenue, beating the $4.5 billion projection. With a strong start in enlarged Optical Networks and solid order intake, there is a positive outlook for Nokia's market recovery and earnings growth.

Historical Performance Review
In Q1 2025, Nokia reported a revenue of $4.39 billion and a net income of $-60.00 million. The company’s EPS was recorded at $-0.01. Gross profit stood at $1.82 billion. Despite a strong revenue performance, the negative net income and EPS indicate challenges in profitability during the quarter.

Additional News
Recently, Nokia has been focusing on strengthening its market position, indicated by a strong start in its enlarged Optical Networks unit. The company's Network Infrastructure segment grew by 11%, showcasing a continued market recovery and a solid order intake. Analysts have maintained a positive outlook on the stock, with a "Strong Buy" rating, suggesting confidence in Nokia's strategic direction and potential for growth. The company's emphasis on expanding its network capabilities seems to be aligning well with market demands, potentially driving future earnings.

Summary & Outlook
Overall, Nokia's financial health presents a mixed picture with strong revenue performance but challenges in profitability. However, the growth in Network Infrastructure and positive analyst ratings suggest potential upside. Risks remain due to the recent negative net income, but the strategic expansion in Optical Networks and market recovery could be catalysts for future growth. The outlook remains cautiously bullish, contingent on Nokia's ability to translate its revenue strength into consistent profitability.

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