Nokia Corporation (NOK - Free Report) recently announced several additions to its Fixed Wireless Access (FWA) portfolio that offer more flexibility to FWA deployments.
5G FWA is a critical technology complementing the company’s existing fiber, copper and coax access solutions. With its new 5G FastMile gateway, any operator owning spectrum can deliver fixed-grade gigabit services to homes and businesses.
The Finnish telecom equipment provider’s 5G Gateway supports additional 5G bands to increase regional coverage, introduces new features that simplify self-install and integrates Wi-Fi 6 to ensure 5G speeds and low latency.
The additions to the company’s FWA portfolio include new FastMile 5G Gateway and new FastMile 4G gateways. The enhanced Gateway adds 5G New Radio bands to support deployments around the globe. New FastMile 4G gateways delivers up to 4dBi of gain and compatibility with Nokia’s in-home WiFi solution.
Nokia is trialing its FastMile 5G solution with more than 30 service providers, and is starting to deploy the solution worldwide with operators. 5G FWA provides mobile operators with an opportunity to capture new revenues while improving their 5G business case with bundled services.
Nokia is well positioned for the ongoing technology cycle, considering the strength of its end-to-end portfolio. It has been witnessing robust progress in its focus areas of software and enterprise while augmenting its footprint in the race to 5G. This should help the company position itself for 5G leadership, and reaffirm commitment to full-year 2020 non-IFRS operating margin between 12% and 16% and non-IFRS earnings per share in the range of €0.37-€0.42.
The company’s installed base of high-capacity AirScale product, which enables customers to rapidly upgrade to 5G, is growing fast. It is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing as well as optical networks with the software and services to manage them.
In addition, Nokia is expanding its business into targeted, high-growth and high-margin verticals to address opportunities beyond traditional markets. However, risks, which include trade-related uncertainty and challenges in the Chinese market, persist.
The company is witnessing healthy underlying momentum in software and enterprise, which augurs well for its licensing business. It is yet to be seen whether coveted solution offerings to industry frontrunners can help Nokia make a turnaround in the upcoming days.
Nokia’s shares have lost 15.1% against the industry’s growth of 14.5% year to date. The company topped earnings estimates thrice in the trailing four quarters, delivering average positive surprise of 89.3%.
Nokia currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader industry are Arista Networks, Inc. (ANET - Free Report) , Harmonic Inc. (HLIT - Free Report) and SeaChange International, Inc. (SEAC - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista surpassed earnings estimates in each of the trailing four quarters, the average surprise being 11.5%.
Harmonic surpassed earnings estimates in each of the trailing four quarters, the average surprise being 119.9%.
SeaChange International has long-term earnings growth expectation of 10%.
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