Nokia Corp. (NOK) stock prices were up 1.04% as of the market close on July 28th, 2021, bringing the price per share up to USD$5.81 at the end of the trading day. Subsequent premarket fluctuations saw the stock drop by 7.75%, bringing it down to USD$6.26.
Continued Financial Growth
NOK stock reported the continuation of its top-line strength through the second quarter of fiscal 2021. Constant currency net sales were up 9% as compared to the numbers reported for the prior-year quarter. This increase was largely driven by growth across all of the company’s business groups, with the Network Infrastructure showing particularly exceptional growth. Reported net sales for the second quarter of fiscal 2021 were up by 4%.
NOK Stock Ahead of its Competition
The company has continued to allocate resources towards its long-term three phased strategy, making significant advancements. Mobile Networks saw the consolidation of its market competitiveness with a major product launch, which includes some features that set NOK stock apart from its competitors. Network Infrastructure continued to gain share over the course of the first half of fiscal 2021. The company’s new operating model paves the way for transparent accountability and fiscal discipline throughout the business structure.
Scope of NOK Stock’s Growth
Comparable gross margins came in at 42.3% in the second quarter of fiscal 2021, indicative of substantial and widespread improvements throughout the business. Mobile Networks were particularly lucrative, having benefitted from a one-time software deal, as well as the rapid growth of the scope of 5G connectivity. Accordingly, a comparable operating margin was reported at 12.8% in the second quarter of fiscal 2021.
Earnings per Share Reports
NOK Stock reported earnings per share in the second quarter of 2021 amounting to USD$0.11, with diluted earnings per share coming out to USD$0.071. The company reported generating positive free cash flow for the fifth consecutive quarter, with its liquidity position remaining strong at USD$4.39 billion in net cash. The strong performance shown by the company in the first half of 2021 were indicated by the 9% constant currency sales growth, as well as a comparable operating margin of 11.9%. This resulted in the company bumping up its fiscal outlook for the full year.
Future Outlook for NOK
Armed with the continued strength of its financial reports for the second quarter of fiscal 2021, NOK stock is poised to capitalize on the opportunities it finds at its disposal. The company is keen to keep its momentum going as it consolidates its market footprint, with shareholder looking forward to significant and sustained increases in shareholder value.
