The logo of telecommunications giant Nokia in Espoo, Finland.


markku ulander/Agence France-Presse/Getty Images

Shares of Nokia
NOKIA,
-16.76%

NOK,
-4.48%

slumped 17% in Helsinki, after the telecom equipment maker lowered its 2020 guidance and introduced 2021 margin guidance below market expectations.

Nokia said its third-quarter profit more than doubled to €203 million, while sales fell 7% to €5.29 billion. On an adjusted basis, Nokia’s earnings per share was steady at 5 eurocents.

Nokia lowered its 2020 adjusted earnings view to 23 cents from 25 cents, and its operating margin view to 9% from 9.5%. It expects 2021 adjusted operating margins between 7% and 10%, below consensus expectations of nearly 11%.

Rival Samsung
005930,
-1.52%

in September won a key 5G contract from Nokia customer Verizon Communications
VZ,
-1.86%
.

” We have lost share at one large North American customer, see some margin pressure in that market, and believe we need to further increase R&D [research and development] investments to ensure leadership in 5G,” said Pekka Lundmark, who completed his first quarter as chief executive.

Nokia also announced a new corporate structure.



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