Elsa Ohlen

Nokia stock fell sharply after the Finnish telecom firm reported quarterly results below analysts expectations and flagged a hit to profits due to tariffs.

Nokia's American depository receipts fell 7.7% to $4.90 in premarket trading Thursday while Helsinki-listed shares dropped by a similar amount.

The drop came after the company's first-quarter adjusted earnings per share came in at 0.03 euros (3.4 cents) on sales of 4,39 billion euros ($5 billion). Analysts had expected earnings per share of 0.04 euros on sales of 4,43 billion euros, according to FactSet.

The company's newly appointed CEO Justin Hotard flagged short-term disruption due to tariffs. "We currently expect a EUR 20 to 30 million impact to our comparable operating profit in the second quarter from the current tariffs. Given the lack of visibility, we have not taken an assumption related to tariffs in the second half of 2025," Hotard noted in the earnings statement.

As part of the European Union, Finland is subject to a 10% levy on all goods imported to the U.S. That may rise to 20% when Trump's 90-day pause on some so-called reciprocal tariffs expire in July if a deal isn't reached.

Last week, Nokia rival Ericsson reported first-quarter earnings before interest and tax (Ebit) surge of 45% from a year ago. The strong results were at least partially driven by stockpiling as customers are buying its products in anticipation of tariffs, J.P. Morgan analyst Sandeep Deshpande said.

Ericsson's U.S.-listed shares fell 1.2% to $8.21 early Thursday.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

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April 24, 2025 07:18 ET (11:18 GMT)

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