Nokia’s (NYSE:NOK) inconsistent quarterly results are holding the stock back. The market sell-off sent NOK stock back to 52-week lows, even though the company continues to win big 5G contracts. On Sept. 29, Japan’s telecom firm KDDI selected Nokia for its 5G upgrade.
As its primary partner to upgrade its network from 4G to 5G, Nokia will install its radio access solution AirScale. With this approach, KDDI will get support for both 4G and 5G operations. Nokia is an existing supplier to KDDI and the two firms have a strong relationship that is over two decades old. \
To support the need for ongoing R&D activities, Nokia showcased its Future X Lab in Finland. This will enable customers to take a look at Nokia’s 5G offerings. Nokia will demonstrate its technologies and innovations to customers at the “Experience Zone.”
Nokia’s Q2 revenue growth of 2.52% Y/Y and an EPS of $0.056 signals a profitable path ahead. Plus, management reiterated its commitment to a dividend of up to EUR 0.20 (US $0.22) annually. Income investors seeking growth get rewarded a dividend that yields around 4.5%.