The 10-second takeaway
For the quarter ended June 30 (Q2), Nokia whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share grew to zero. GAAP loss per share dropped.
Margins increased across the board.
Nokia reported revenue of $7.40 billion. The 35 analysts polled by S&P Capital IQ looked for revenue of $8.28 billion on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $9.56 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 $0.00. The 14 earnings estimates compiled by S&P Capital IQ forecast -$0.04 per share. Non-GAAP EPS shrank to zero from the prior-year quarter's $0.00. GAAP EPS were -$0.08 for Q2 against -$0.48 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 25.7%, 140 basis points better than the prior-year quarter. Operating margin was -5.2%, 200 basis points better than the prior-year quarter. Net margin was -4.0%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.64 billion. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $35.05 billion. The average EPS estimate is $0.01.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 3,020 members out of 3,366 rating the stock outperform, and 346 members rating it underperform. Among 634 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 561 give Nokia a green thumbs-up, and 73 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 $3.74.
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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.