The 10-second takeaway
For the quarter ended March 31 (Q1), Nokia whiffed on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP loss per share shrank. GAAP loss per share dropped.
Margins grew across the board.
Nokia reported revenue of $7.50 billion. The 34 analysts polled by S&P Capital IQ predicted net sales of $8.38 billion on the same basis. GAAP reported sales were 24% lower than the prior-year quarter's $9.80 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 -$0.03. The 13 earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. Non-GAAP EPS were -$0.03 for Q1 versus -$0.10 per share for the prior-year quarter. GAAP EPS were -$0.09 for Q1 against -$0.33 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 31.4%, 370 basis points better than the prior-year quarter. Operating margin was -2.6%, 90 basis points better than the prior-year quarter. Net margin was -4.6%, 800 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.42 billion. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $35.64 billion. The average EPS estimate is -$0.02.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,014 members out of 3,359 rating the stock outperform, and 345 members rating it underperform. Among 617 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 541 give Nokia a green thumbs-up, and 76 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 $3.94.
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