Shares of communication networking company (NYSE: NOK) dropped on Friday after the company lowered its guidance in an unscheduled business update. As of 10:30 a.m. ET, Nokia stock was down about 10%.
On April 20, Nokia reported financial results for the first quarter of 2023, with net sales rising 9% year over year. But CEO Pekka Lundmark warned, "We are starting to see some signs of the economic environment impacting customer spending." Today, those impacts to customer spending have officially lowered the company's full-year outlook.
Previously Nokia believed it would generate full-year net sales of 24.6 billion to 26.2 billion euros, or roughly $27.6 billion to $29.4 billion. However, today the company's management said, "Customer spending plans are increasingly impacted by high inflation and rising interest rates along with some projects now slipping to 2024."
Source Fool.com