Why Nokia Shares Got Clobbered

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Nokia (NYSE: NOK  ) have gotten clobbered today, down by as much as 12% after the Finnish smartphone maker reported first-quarter earnings.

So what: Revenue in the first quarter totaled $7.7 billion, which missed the Street's forecasts. On the bright side, the company narrowed its loss to $0.07 per share. There was other good news, as Lumia shipments were strong and increased 27% sequentially to 5.6 million units. Nokia closed the quarter with $5.9 billion in net cash.

Now what: Total smartphones dropped precipitously as Nokia expectedly ramps down Symbian units, which were just 500,000. The company's Asha line of feature phones saw shipments of 5 million. Nokia's lower-end devices are under competitive pressure from Android devices targeting low price points. The networks business held up, and CEO Stephen Elop said that segment helped contribute to Nokia's cash position this quarter. However, investors were focusing on the weakness up top.

Interested in more info on Nokia? Add it to your watchlist by clicking here.

Nokia's been struggling in a world of Apple and Android smartphone dominance. However, the company has banked its future on its next generation of Windows smartphones. Motley Fool analyst Charly Travers has created a new premium report that digs into both the opportunities and risks facing Nokia to help investors decide if the company is a buy or sell. To get started, simply click here now.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2371654, ~/Articles/ArticleHandler.aspx, 11/23/2014 11:06:26 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement