Nokia Beats Analyst Estimates on EPS

Nokia (NYSE: NOK  ) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nokia met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share grew.

Gross margins grew, operating margins dropped, net margins increased.

Revenue details
Nokia chalked up revenue of $10.60 billion. The 34 analysts polled by S&P Capital IQ expected a top line of $10.66 billion on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $13.00 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.08. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were $0.07 for Q4 against -$0.38 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.1%, 270 basis points better than the prior-year quarter. Operating margin was 6.2%, 180 basis points worse than the prior-year quarter. Net margin was 2.5%, 1,320 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $9.06 billion. On the bottom line, the average EPS estimate is -$0.05.

Next year's average estimate for revenue is $40.09 billion. The average EPS estimate is $0.05.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,994 members out of 3,346 rating the stock outperform, and 352 members rating it underperform. Among 665 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 589 give Nokia a green thumbs-up, and 76 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nokia is hold, with an average price target of $2.77.

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Seth Jayson owned shares of the following at the time of publication: Nokia. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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12/19/2014 4:03 PM
NOK $7.91 Down -0.13 -1.62%
Nokia CAPS Rating: **

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