Nokia (NYSE:NOK) stock was up 11% in mid-morning trading on Thursday, January 25. Its shares have recently gained momentum after it moved forward with layoffs and cost cutting following a disappointing third quarter report. Management stated that it expected a rebound in the months ahead, but it was difficult to put a positive spin on a 70% profit plunge.

The Finnish company provides mobile, fixed, and cloud network solutions to a worldwide client base. Nokia was once a powerhouse in the hardware space, but intense competition has hit the company hard.

On Thursday, January 25, 2024, Nokia said that it expects to see a demand recovery in the second half of the year. This came after it reported weak sales of 5G equipment. Fortunately, that was offset by the company’s stringent cost-cutting measures. This allowed Nokia to deliver a positive operating profit in the quarter, beating some forecasts.

In the earnings snapshot, Nokia reported a loss of $46.3 million in the final quarter of the 2023 fiscal year. Moreover, it posted negative earnings per share (EPS) of ($0.01). Adjusted EPS for one-time gains and costs amounted to $0.11. This fell short of analysts’ expectations.
Nokia also posted total revenue of $6.15 billion in the final quarter of 2023, also falling short of analysts’ expectations. For the full year, Nokia delivered profit of $719 million, or $0.13 per share, and revenue reached $24.09 billion.