Nokia Goes Negative

Seth Jayson, The Motley Fool
Updated

Nokia (NYS: NOK) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Nokia met expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.


Margins dropped across the board.

Revenue details
Nokia recorded revenue of $9.80 billion. The 37 analysts polled by S&P Capital IQ anticipated sales of $9.88 billion on the same basis. GAAP reported sales were 34% lower than the prior-year quarter's $14.75 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.10. The 16 earnings estimates compiled by S&P Capital IQ predicted -$0.10 per share on the same basis. GAAP EPS were -$0.33 for Q1 compared to $0.13 per share for the prior-year quarter.

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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 27.7%, 190 basis points worse than the prior-year quarter. Operating margin was -3.5%, 1,030 basis points worse than the prior-year quarter. Net margin was -12.6%, 1,590 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $10.27 billion. On the bottom line, the average EPS estimate is -$0.09.

Next year's average estimate for revenue is $42.97 billion. The average EPS estimate is -$0.26.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,780 members out of 3,081 rating the stock outperform, and 301 members rating it underperform. Among 627 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 572 give Nokia a green thumbs-up, and 55 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 $6.35.

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At the time thisarticle was published Seth Jayson owned shares of the following at the time of publication: Nokia. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Nokia. 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.

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