What happened

Shares of Nokia (NYSE:NOK) fell hard on Thursday morning, triggered by a mixed earnings report. As of 11:40 a.m. EDT, the Finnish telecom-infrastructure specialist's stock had taken a 19.5% haircut.

So what

Nokia's adjusted third-quarter earnings landed at $0.11 per share and per American depositary receipt, up from $0.05 per share in the year-ago period and comfortably ahead of the Street's consensus estimate of $0.07 per share. But sales fell 7% year over year, stopping at $6.46 billion and falling short of analysts' $6.6 billion target.

Looking ahead, Nokia's management team contemplated a difficult global market for telecom-network upgrades and installations, resulting in a downbeat financial forecast. Among other issues, Nokia now expects its 2017 expenses related to the acquisition of Alcatel-Lucent to be about $2.2 billion, a 12% increase over the previous guidance. Adding salt to the wound, Nokia's management also expects these soft market conditions to continue through the first half of 2018.

Bird's-eye view of a lightly crowded city street, overlaid with a transparent Nokia logo.

Image source: Nokia.

Now what

The Alcatel-Lucent deal is still expected to unlock $1.4 billion of annual cost savings, starting in 2018. As for the global networking market, the upcoming wave of 5G wireless-network upgrades should give Nokia and its sector peers plenty of fuel for their growth fires in late 2018 and beyond. But Mr. Market is ignoring these long-term business prospects today, choosing to focus on the short-term downsides of Nokia's report instead.

This is a classic cyclical business, caught in the doldrums before the next upturn. Trading at just 13 times trailing earnings today, Nokia's stock is starting to look like a good deal for opportunistic investors.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.