Nokia Launches Innovative Services to Boost Profitability

Nokia Corporation NOK recently unveiled its venture — Nuage Networks — Virtualized Network Services (VNS) platform to deliver the most powerful and secure end-to-end network governance across a multi-cloud environment with full visibility and control from a single management interface. Notably, VNS is the industry’s first and only SD-WAN 2.0 offering that is more than a network connectivity platform.

The Nuage Networks VNS automates branch site connectivity to help service providers and enterprises reduce operating cost and bring new services faster. SD-WAN 2.0 addresses the modern enterprise network’s need to connect users to applications in a secure, programmable and automated way.

Nuage Networks’ strong push in the next generation SD-WAN market powered by strategic deals with service providers and enterprises from around the world is encouraging. The company’s VNS has increasingly become the choice of global carriers and enterprises that are looking to automate, secure and optimize their IT processes as well as WAN, datacenter and public cloud networks.

In a separate development, Nokia and Altran, jointly unveiled a solution to optimize and streamline the maintenance of rolling stock for railway operators. Altran is a global innovation, engineering consulting and R&D services firm. Notably, this solution combines Nokia’s strength in Internet of Things (IoT), networking and analytics with Altran’s strength in application development, analytics and system integration for railway operations.

This agreement underscores Nokia’s strong track record of providing mission-critical networks to railway operators. It also showcases Nokia’s strategy of expanding its customer base beyond the traditional telecommunications space, resulting from its diversification efforts.

The solution has been designed to provide predictive maintenance support for rolling stock from all manufacturers, reducing maintenance cost for railway operators. It includes smart sensors to monitor and gather data on the condition and performance of rolling stock, the wireless network and IoT connections. The revolutionary approach can deliver up to a 30% improvement in train reliability, 20% reduction in delays and cancellations and 10% reduction in maintenance man-hours. Nokia enables smooth migration of legacy products and services toward the next generation of railways broadband technology.

Nokia is a leading player in the mobile and fixed network infrastructure with the industry’s most complete, end-to-end portfolio of products, services and licensing. However, in the past three months, shares of Nokia have lost 7.6% against growth of 13.5% for the industry primarily due to foreign currency exchange rate fluctuations and soft market conditions across its geographical operations. It remains to be seen how these latest, innovative service offerings to varied customers help the company to revive profitability in days to come.

Nokia currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include Ribbon Communications Inc. RBBN, Clearfield, Inc. CLFD and QUALCOMM Incorporated QCOM. While Ribbon Communications sports a Zacks Rank #1 (Strong Buy), Clearfield and QUALCOMM carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ribbon Communications has a long-term earnings growth expectation of 12%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 168.1%.        

Clearfield beat earnings estimates in each of the trailing four quarters, the average surprise being 52.8%.   

QUALCOMM has a long-term earnings growth expectation of 10.9%. It beat earnings estimates in each of the trailing four quarters, the average surprise being 19.8%.     

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