Nokia Oyj (NOK) shares plummeted 5.05% during Tuesday's trading session, as investors reacted to a less-than-optimistic earnings preview for the company's upcoming second-quarter results. The sharp decline comes ahead of Nokia's scheduled earnings report on July 24, which is expected to reveal the company's financial performance for the period ending June 30, 2025.

According to the earnings preview, while Nokia is anticipated to show a 14.5% increase in quarterly revenue to $5.505 billion, the company's earnings per share estimate stands at just 6 cents. This forecast, combined with a lukewarm analyst consensus, appears to have spooked investors. The current average analyst rating on Nokia shares is a "hold," with a breakdown of 4 "strong buy" or "buy," 4 "hold," and 1 "sell" or "strong sell" recommendations.

Adding to the bearish sentiment, Nokia's recent earnings history has been mixed. The company missed earnings estimates in two of the last four quarters, including a significant 40% miss in the most recent quarter ending March 31, 2025. While Wall Street's median 12-month price target for Nokia is $5.75, about 17.3% above its last closing price, the uncertainty surrounding the upcoming earnings report and the company's ability to meet expectations seems to have triggered a sell-off among investors.