The 10-second takeaway
For the quarter ended June 30 (Q2), Nokia beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share expanded.
Margins contracted across the board.
Nokia reported revenue of $9.56 billion. The 36 analysts polled by S&P Capital IQ predicted revenue of $9.30 billion on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $13.47 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.10. The 14 earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share. GAAP EPS were -$0.48 for Q2 against -$0.15 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 23.6%, 720 basis points worse than the prior-year quarter. Operating margin was -7.4%, 650 basis points worse than the prior-year quarter. Net margin was -18.7%, 1,470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.80 billion. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $37.16 billion. The average EPS estimate is -$0.35.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,854 members out of 3,189 rating the stock outperform, and 336 members rating it underperform. Among 597 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 527 give Nokia a green thumbs-up, and 70 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 $3.07.
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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. 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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