The 10-second takeaway
For the quarter ended Sep. 30 (Q3), 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 increased.
Margins shrank across the board.
Nokia tallied revenue of $9.30 billion. The 40 analysts polled by S&P Capital IQ expected a top line of $8.94 billion on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $12.08 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 -$0.09. The 17 earnings estimates compiled by S&P Capital IQ predicted -$0.14 per share. GAAP EPS were -$0.34 for Q3 versus -$0.03 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 27.6%, 50 basis points worse than the prior-year quarter. Operating margin was -1.1%, 160 basis points worse than the prior-year quarter. Net margin was -13.4%, 1,260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.22 billion. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $39.21 billion. The average EPS estimate is -$0.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,901 members out of 3,256 rating the stock outperform, and 355 members rating it underperform. Among 619 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 537 give Nokia a green thumbs-up, and 82 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 $2.33.
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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 positions in the stocks mentioned above. 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.