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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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 position in any of the stocks mentioned. 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.