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.