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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