Summary by Moomoo AI
Nokia reported Q2 2024 net sales declined 18% YoY to EUR 4.47B, primarily due to strong year-ago comparisons in India. Comparable operating margin decreased to 9.5% from 11.4%, while gross margin improved 450bps to 44.7%. The quarter benefited from a EUR 150M contract resolution with AT&T in Mobile Networks division.The company has made significant progress on cost savings, with EUR 400M run-rate savings already achieved out of targeted EUR 800M-1.2B by 2026. Q2 free cash flow remained strong at EUR 394M, with net cash balance of EUR 5.5B. The board plans to accelerate the ongoing EUR 600M buyback program for completion by end-2024.Nokia maintains its full-year 2024 outlook, expecting comparable operating profit of EUR 2.3-2.9B and free cash flow conversion of 30-60%. The company anticipates significant net sales growth acceleration in H2 2024, tracking towards mid-point or slightly below for operating profit guidance and higher-end of cash flow conversion target.
