=Nokia (NOK) reported earnings on Thur 27 Oct 2016 (b/o)

Nokia reports EPS in-line, beats on revs; CFO resigns :

• Reports Q3 (Sep) earnings of 0.04 per share, in-line with the Capital IQ Consensus of 0.04; revenues rose 97.6% year/year to 6 bln vs the 5.84 bln Capital IQ Consensus.
  • Nokia's Networks business - 12% year-on-year net sales decrease in Q3 2016. Consistent with our outlook for the wireless infrastructure market, net sales were weak in Mobile Networks within Ultra Broadband Networks, and accounted for approximately 80% of the overall decrease in Nokia's Networks business. IP Networks and Applications also contributed to the decrease. This was partially offset by growth in Fixed Networks within Ultra Broadband Networks.
    In Q3 2016, solid gross margin of 37.2% and operating margin of 8.1%, supported by continued strong operational performance and cost controls.
  • Nokia Technologies +109% year-on-year net sales increase and 168% operating profit increase in Q3 2016. Excluding the impact of non-recurring licensing income, Nokia Technologies net sales and operating profit both would have grown by approximately 50% year-on-year, primarily due to higher intellectual property licensing income and, to a lesser extent, increased net sales resulting from the acquisition of Withings.
  • Group Common and Other - 41% year-on-year net sales increase in Q3 2016, with particularly strong growth in Alcatel Submarine Networks.
• Outlook
  • Nokia's Networks business - FY16 net sales : Decline YoY; FY16 operating margin: 7-9%
  • FY16 Capital expenditures ~EUR 550 million (update) Primarily attributable to Nokia's Networks business. (This is an update to the earlier outlook for EUR 650 million)
• CFO News
  • Timo Ihamuotila, Chief Financial Officer of Nokia, resigns from the company to join ABB as Chief Financial Officer and a member of the Executive committee.
    • Ihamuotila will continue in his current role as Nokia CFO and as a member of the company's Group Leadership Team until December 31, 2016, and will remain as an advisor to the company until February 28, 2017.
    • Kristian Pullola, who currently is Nokia's Senior Vice President, Corporate Controller, is appointed as Chief Financial Officer and member of the Group Leadership Team as of January 1, 2017.