Recently, Nokia Corporation NOK announced that it has inked a deal with Saudi Telecom Company (STC) to help the 5G network build-out of the latter in the region with its advanced products and services. STC is a Saudi Arabia-based telecommunications company that provides landline, mobile and Internet services to varied customers. The latest deal entails several firsts in STC’s network, including the launch of cloud RAN and AirScale, coupled with the deployment of the Wavence platform in microwave and AirScale indoor radio.
Notably, the Finnish telecom equipment manufacturer’s comprehensive solutions would be employed to build a 5G network first in the western and southern part of Saudi Arabia, including the holy cities of Makkah and Madinah. The rollout phase is currently underway and is expected to be completed by the end of 2020.
The technology company’s 5G portfolio is likely to provide STC’s subscribers with ultra-high bandwidth and low latency services, alongside new applications in areas like virtual reality, augmented reality and artificial intelligence. Businesses will also gain from various IoT vertical use cases enabled by 5G as it will help enhance operational efficiency and user experiences while providing new revenue streams.
Nokia boasts a leading position in mobile and fixed network infrastructure, with the industry’s most complete, end-to-end product portfolio. The company’s deal win rate is encouraging with notable successes in the key 5G markets of the United States and China. It is continuously expanding business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its primary markets. Rollouts of next-generation 5G networks are expected to boost market conditions considerably in 2019 and beyond.
Furthermore, to strengthen the company’s market position, Nokia facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency.
Nokia is working to accelerate its strategy execution, sharpen customer focus and reduce long-term costs. This should help the company position itself for long-term 5G leadership, and reaffirm commitment to full-year 2020 non-IFRS operating margin between 12% and 16% and earnings per share in the range of €0.37-€0.42.
Zacks Rank and Stocks to Consider
Nokia currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Comtech Telecommunications Corp. CMTL, Harris Corporation HRS and Motorola Solutions, Inc. MSI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comtech has a long-term earnings growth expectation of 5%.
Harris has a long-term earnings growth expectation of 8%.
Motorola has a long-term earnings growth expectation of 8%.
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