Trending: Nokia, Ericsson Shares Tumble

1009 GMT - Nokia and Ericsson are among the most mentioned companies across news items over the past three hours, according to Factiva data, with both of their shares falling after updates. Nokia has lowered its full-year sales guidance and narrowed its operating margin outlook due to weaker demand in its network infrastructure and mobile networks businesses, given a tougher macroeconomic environment and as customers work through built-up inventory. Ericsson said second-quarter sales in North America were down 50%, and that it expects trends and market mix to continue into the third quarter. It added that third quarter Ebita margin is expected to be in line with, or slightly below the second quarter. Citi analysts wrote that Nokia's warning is directionally similar to Ericsson's, although the magnitude of change for Nokia is greater as its full-year guidance had anticipated greater improvement in 2H. "The telecom equipment market is facing stronger headwinds than we anticipated, in particular in the key U.S. market, where inventory digestion and weaker deployments are leading to greater pressure on near-term revenue." Any fundamental recovery looks delayed into 2024, Citi says. Nokia shares are currently down 8.35%, while Ericsson shares are down 7.8%. Dow Jones & Co. owns Factiva. ([e-mail].)

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July 14, 2023 06:26 ET (10:26 GMT)

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