ESPOO (dpa-AFX) - At its Annual General Meeting or AGM held on April 29, 2025, in Helsinki, Nokia (NOK) shareholders approved all proposals put forward by the board. The company's 2024 financial statements were adopted, and both board members and the CEO were released from liability for the year.
The AGM also approved the Remuneration Report and Policy. While shareholders opted not to issue a dividend directly through the AGM, they authorized the board to distribute up to EUR 0.14 per share either as dividends or from reserve equity. This authorization will remain in effect until the next AGM, allowing the board to determine the amount and timing of distributions.
The board's composition was updated with the election of ten directors, including newcomers Pernille Erenbjerg and Timo Ihamuotila, alongside returning members such as Sari Baldauf and Mike McNamara. Compensation for board members was finalized, with part of the payment made in Nokia shares. Deloitte Oy was reappointed as the company's auditor and named as the sustainability reporting assurer for 2026, with Jukka Vattulainen continuing as the lead partner. Additionally, the board received authorization to repurchase up to 530 million shares using unrestricted equity, valid through October 28, 2026, replacing the prior authorization.
Financial analysts provided mixed outlooks for Nokia Oyj (NOK). Based on one-year price targets from six analysts, the average estimate for the stock is $5.55, representing a 13.03% upside from the current price of $4.91. Targets range from a high of $7.00 to a low of $3.80. The average brokerage recommendation, derived from nine firms, is 2.7 on a 1-5 scale, indicating a 'Hold' rating. Meanwhile, GuruFocus estimates Nokia's fair value (GF Value) to be $4.58, suggesting a potential downside of 6.72% from the current price.
In terms of business performance, Nokia reported a robust Q4 2024. The company recorded 9% year-over-year growth in net sales. Network Infrastructure surged by 17%, led by IP Networks with 24% growth. Cloud and Network Services grew 7%, even after a 4 percentage point drag from a past disposal. The operating margin reached 19.1%-its highest since 2015-while gross margin stood at 47.2%. Nokia also reported free cash flow of EUR 2 billion and ended the year with a net cash balance of EUR 4.9 billion.
Mobile Networks, however, saw a 2% decline in net sales and a 20 basis point drop in gross margin to 38.1%. Enterprise sales were down 4% in constant currency, partly due to volatile Webscale deals. The company also continues to face stiff competition in Latin America, contributing to market instability. Nonetheless, Nokia Technologies delivered an 85% increase in Q4 net sales, driven by new licensing deals and catch-up payments.
Despite mixed signals across segments, Nokia's financial strength, strategic authorizations, and focused investments position it for steady long-term growth.
Tuesday, NOK closed at $4.97, up 1.22%, and is currently trading at $4.985 in after-hours, a further gain of 0.30% on the NYSE.
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