The 10-second takeaway
For the quarter ended March 31 (Q1), Nokia met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Nokia recorded revenue of $9.80 billion. The 37 analysts polled by S&P Capital IQ anticipated sales of $9.88 billion on the same basis. GAAP reported sales were 34% lower than the prior-year quarter's $14.75 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.10. The 16 earnings estimates compiled by S&P Capital IQ predicted -$0.10 per share on the same basis. GAAP EPS were -$0.33 for Q1 compared to $0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.7%, 190 basis points worse than the prior-year quarter. Operating margin was -3.5%, 1,030 basis points worse than the prior-year quarter. Net margin was -12.6%, 1,590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.27 billion. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $42.97 billion. The average EPS estimate is -$0.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,780 members out of 3,081 rating the stock outperform, and 301 members rating it underperform. Among 627 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 572 give Nokia a green thumbs-up, and 55 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 $6.35.
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