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Nokia Beats Expectations But Takes A Step Back Anyway

By Seth Jayson – Updated Apr 10, 2017 at 11:48AM

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Just the facts, Fool.

Nokia (NYSE: NOK) reported earnings on July 18. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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. 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.

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