====Nokia (NOK) reported earnings on Fri 31 Jul 20 (b/o)

HELSINKI/STOCKHOLM (Reuters) - Finnish telecom network equipment maker Nokia reported an unexpected rise in second-quarter underlying profit on Friday as it took on less low-margin business particularly in China, sending its shares up 13% in early trade.

Cutting less-profitable service business and not winning 5G radio deals in the cut-throat Chinese market helped Nokia, where new Chief Executive Pekka Lundmark takes over this weekend, upgrade its earnings outlook for 2020.

"We do not mind trading poor revenue which doesn't have high quality margin for better revenue," outgoing chief executive Rajeev Suri told Reuters.

Nokia said its underlying earnings in April through June rose to 0.06 euros per share from 0.05 euros a year ago, beating the 0.03 euros consensus in a Refinitiv poll.

Nokia, which had warned of a weak second quarter due to the virus, raised its forecast for 2020 underlying earnings per share to between 0.20 and 0.30 euros, from 0.18-0.28 euros.

Quarterly revenue fell 11% to 5.09 billion euros, below a consensus figure of 5.28 billion, Refinitiv Eikon data showed.

Most of the drop was due to the effects on the economy of COVID-19, but Suri also cited a sharp decline in China based on a "prudent approach" in that market, and proactive steps to reduce low-margin services business, though he didn't say what the latter consisted of.

Nokia lowered its outlook for its market share in its main markets, measured by revenue, to underperform from its previous guidance of performing in line with rivals.

Suri's successor Lundmark still faces key decisions on finding a balance between improving profitability and defending Nokia's market share, which currently makes it number two behind China's Huawei but ahead of Sweden's Ericsson when measured by revenue.

"While the improvement in profitability from extremely low levels is clearly very encouraging, we are unsure on how much further Nokia can take such an improvement when sales are coming under significant pressure," Liberum analyst Janardan Menon said.

Ericsson had reported a rise in 5G network sales and software revenue two weeks ago.

Earnings this week : July 27 - 31, 20 (wk 31)

Monday (July 27)

• Afternoon: AGNC ARE AMKR BRO CATY CINF FIX CR EHC FFIV HSTM HTLF HXL IBTX JJSF JBT MEDP NOV NXPI OGS OMF PCH PFG QTS RNST SSD TCF TNET TBI UHS VCRA

Tuesday

• Morning: MMM MO ARCH AWI ABG B CNC CVLT GLW CMI DHI DTE ECL FBP EBC FELE BEN HOG HUN IVZ IRDM JBLU LH LW MLM MCD MDC MSCI NEO EDU OMC PFE PII PRLB RTX ROK ROP SPGI ST SHW SSTK SITC TRU TPB WAB WDR XRX YNDX ZBRA
• Afternoon: ACCO AMD AFL AKAM AMED AMGN APAM ASH ATRC CAR AXS BE BGFV BXP BYD CHRW CE CB CYH CSGP DENN DXCM EGP EBAY EIX ENVA EQR EEFT FEYE FCF FTV THG HA HP HIW IMAX JNPR KAI LSCC MASI MTDR MXIM MDLZ MPWR MRC NCR NWE OMCL OKE PKG PEGA PKI PLT RNR RXN STX SSNC STAG SBUX SYX TENB TRMK UDR UMBF UNM V WRE WH

Wednesday

• Morning: AAN AER ALKS ANTM APHA ADP AXTA BKU BDC BXMT BA BSX BCO BG CCJ CLS GIB CHEF CME CRTO DIN DT ETN ENB ETR EPD FSS FDP GRMN GD GE GM HES IPG JHG LIVN MHO MGLN MTOR MNRO NYCB NSC OC PAG PB RDWR ROL RES R SAIA SNY SC SMG SHOP SLAB SITE SIX SPOT TSEM FLOW SMP SHOO TROW TEL MEET TT UMC UTHR WNC WING

• Afternoon: AEGN AEM AGI ALGT AMP NLY AM AR APA ACGL ADM ASGN AVB AVTR AX BHE BLKB WHD CERN CAKE CHE CHDN CDE CGNX CTSH CXO CNMD CCI CONE DORM DRE WIRE EQIX EQC FB FICO FBHS FCPT GNW HOLX HPP PI INOV ISBC KRC KGC KN KLIC LRCX MTSI MANT VAC MGRC MMSI MAA MKSI MOBL MC MSA EGOV ORLY OII OIS PGRE PYPL PDM PPC PS PTC QRVO QCOM RJF SANM SIGI SCI NOW SIMO SKY SFM SRI RGR FTI TDOC TTEK TSE TROX TTMI TYL UCTT URI VICI WRI WERN WPX YUMC

Thursday (July 30)

• Morning: AOS ALXN AMT BUD APO APTV AZXN BAX BPMC BC CWT CRAI CI CLF COHU CMCSA COP COR CROX DAN DBD DNKN DD EXP ELAN LLY ES FMS FCN GNRC GPC GIL GPI GRUB HBI HGV IP ITGR ICE K KDP KEX KHC LNTH LKQ MMP MMC MA MPW MD MGPI TAP MCO MYE NTCT NEM NOC NVCR ODFL OSK OSTK PATK PRFT PBI PQG PG PFS RGEN RDS.A SNDR SIRI SM SAH SO SWK SF TMHC TRP TFX TPX TNC TXT TW TRS UPS GRA WM WEX YUM
• Afternoon: TWOU EGHT AIMT MDRX GOOG ATUS AMZN AAPL ATR ACA AJG TEAM BGA BAND BIO BEAT BRKS BVN BLDR COG CPT CC CXP COLM OFC CUZ CVA CACC CRY DVA DECK DLX DLR DRQ LOCO EA EBS NVST EXAS EXPE EXPO FHI FLEX FND FLS F FORM FTAI FWRD GLPI GILD HIG HTGC HTH HOPE HST HUBG MX MTZ MELI MGM MTX MITK MHK MOH PFPT PRO QDEL RP RDFN SGEN SHAK SKYW SPSC SYK TNDM X VRTX VRTU INT WWE XLNX XPO ZEN

Friday (July 31)

• Morning: ABBV AXL AON BCPC BERY BAH CAT CBOE CBRE CHTR CVX CHD CL CTS D XOM FCAU GT IDXX ITW MRK NOK NWL NVT PBF PSX PSXP PINS PNM SNA SPB UAA VFC WPC WETF

Earnings spotlight:

• Avery Dennison (NYSE:AVY), Hasbro (NASDAQ:HAS) and NXP Semi (NASDAQ:NXPI) on July 27; 
• Centene (NYSE:CNC), McDonald's (NYSE:MCD), Pfizer (NYSE:PFE), 3M (NYSE:MMM), Altria (NYSE:MO), Visa (NYSE:V), Starbucks (NASDAQ:SBUX), eBay (NASDAQ:EBAY) and Mondelez International (NASDAQ:MDLZ), AMD (NASDAQ:AMD) and Raytheon Technologies (NYSE:RTX) on July 28; 
• Boeing (NYSE:BA), General Electric (NYSE:GE), General Motors (GPhillM), General Dynamic (NYSE:GD), Boeing (BA), Spotify (NYSE:SPOT) Facebook (FB), PayPal (NASDAQ:PYPL), Archer Daniels Midland (NYSE:ADM), Qualcomm (NASDAQ:QCOM), Shopify (NYSE:SHOP) and Yum China (NYSE:YUMC) on July 29; 
• Royal Dutch Shell (NYSE:RDS.A), CIGNA (NYSE:CI), Comcast (NASDAQ:CMCSA), UPS (NYSE:UPS), Procter & Gamble (NYSE:PG), Anheuser-Busch InBev (NYSE:BUD) and Kraft Heinz (NASDAQ:KHC), DuPont (NYSE:DD), Valero Energy (NYSE:VLO), Amazon (AMZN), Apple (AAPL), Alphabet (GOOGL), Ford (NYSE:F), MGM Resorts (NYSE:MGM) and Gilead Sciences (NASDAQ:GILD) on July 30; 
• Exxon Mobil (NYSE:XOM), Phillips 66 (NYSE:PSX), Chevron (NYSE:CVX), Merck (NYSE:MRK) and Caterpillar on July 31.

-=Nokia (NOK) reported earnings on Thur 6 Feb 20 (b/o)

Nokia beats by 0.02, beats on revs; guides FY20 EPS in-line

• Reports Q4 (Dec) earnings of 0.15 per share, 0.02 better than the S&P Capital IQ Consensus of 0.13; revenues rose 0.5% year/year to 6.9 bln vs the 6.81 bln S&P Capital IQ Consensus.
• Co issues in-line guidance for FY20, sees EPS of 0.20-0.30 vs. 0.25 S&P Capital IQ Consensus.

Earnings this week : Feb 3 - 7, 20 (wk 6)

Monday (Feb 3)

• Morning: ACM AMG ABG CTLT CHKP NSSC ON SASIA SYY
• Afternoon: ARE GOOG AFG BECN CBT EZPW FN HLIT HIG HP HXL HLI KMT KRC LEG MTSC NXPI PAHC PCH RBC SSD SXI VVV WWD

Tuesday (Feb 4)

• Morning: ATI AXE ARMK ATKR BDC TECH BP CNC CLX CMCO COP CSWI CTS CMI EXP ETN EMR ENTG AQUA IT HAE HLNE HUBB JHG LHX LANC LII LITE MCK MTG MSGN PBI PINC RL ROLL RCL SPG SIRI SNE TDG VSH GRA WDR WAT ZBH

Mon pm & Tue am (by vol) : https://finviz.com/screener.ashx?v=211&t=ARE,GOOG,AFG,BECN,CBT,EZPW,FN,HLIT,HIG,HP,HXL,HLI,KMT,KRC,LEG,MTSC,NXPI,PAHC,PCH,RBC,SSD,SXI,VVV,WWD,ATI,AXE,ARMK,ATKR,BDC,TECH,BP,CNC,CLX,CMCO,COP,CSWI,CTS,CMI,EXP,ETN,EMR,ENTG,AQUA,IT,HAE,HLNE,HUBB,JHG,LHX,LANC,LII,LITE,MCK,MTG,MSGN,PBI,PINC,RL,ROLL,RCL,SPG,SIRI,SNE,TDG,VSH,GRA,WDR,WAT,ZBH&ta=0&o=-volume

• Afternoon: EGHT ATGE AFL ALL DOX AINV APAM ATO BOOT CDK CERN CMG CB TCS CCK ESE ETH FISV F GTES GNW GILD GL THG HIW IPHI JKHY KLAC KN MANH MTCH MDU MCHP MODN MWA NBIX NEWR OI OLN PCTY CNXN PDM PAA PAGP PLT PWL PRU QGEN RRR RNR SCSC STX SNAP SWI TENB UNM USNA VIAV DIS YRCW ZAYO

Wednesday (Feb 5)

• Morning: ABB AME BMI BSX CPRI CG COTY DTE ENR FSV GM GPI HUM KFRC MHO MCFT MRK NS NVT BTU PAG PFGC SR SPOT SUM TMHC TKR UMC WD
• Afternoon: ADTN AOSL UHAL ANGI AVB ACLS CCMP CENT CDAY CINF CTSH COHR CUZ CSGS CUB DHT ECHO ELF ENS FEYE FLO FMC FORM FOXA GLUU GPRO GRUB HI ICHR IAC IRBT LCI LNC RAMP MTRX MXL MET MC MPWR NTGR NUAN ORLY OHI PAYC PTON QCOM  QNST RDN RYN RGLD SONO SAVE SU TBI TTMI TWLO TWO UGI WERN YUMC ZNGA

Thursday (Feb 6)

• Morning: ABMD WMS AGCO ALNY MT ARCH ARW BLL BCE BDX BGCP BV BCO BMY CAH CDW CI COR DNKN EIGI EL FCAU GLOP GLT HL  EAF HAIN ICE K KEM MAC MMS MPW MDP NRX NYT NGL NJR NOK ODFL PTEN PENN PM PBH PRLB REGN SPGI SNY SNA TPR TGI TWTR TSN USX VSTO WLTW WWE XYL YUM
• Afternoon: TWOU ATVI ASYS BIDU BHE BILL BKH BRKS CSL CCS COLM OFC DLX DXC EGP EGAN ENTA EHC EXPO FLT FSCT FTNT FTV FWRD G HUBG IQ LMAT LGND LFG.A MTW MTD MOBL MSI MYGN NOV NTUS UEPS NWSA NLOK OMCL ONTO PMT PINS POST PRO SGEN SIMO SKX SYNA TTWO TDC TSE UBER VRSN VVI VSAT VRTU VCRA WYNN ZEN

Friday (Feb 7) 

• Morning: ABBV AVTR CAE CCJ CBOE CNHI GOOS ROAD UFS FE GRC HMC

This week's biggest % winners & losers : Oct 21 - 25, 19 (wk 43)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: BIIB (288.04 +30.89%), RIGL (2.1 +28.44%), ANIK (73.36 +26.77%), DVAX (5.01 +22.79%), LXRX (3.87 +20.94%)
• Industrials: UFPI (50.26 +21.55%)
• Consumer Discretionary: PETS (25.81 +32.77%), TSLA (328.13 +27.7%), BJRI (43.35 +23.93%), PDD (40.84 +22.35%), STMP (92.01 +21.75%)
• Information Technology: TWTR(30.30  -22.29%) CISN (10.09 +20.26%), FSCT (30.59 +20.2%)
• Financials: ONDK (4.46 +25.99%)
• Energy: QEP (3.65 +34.69%), TK (5.53 +29.21%), CHK (1.56 +20.93%)

This week's top % losers

• Healthcare: OPK (1.44 -31.26%), TXMD (2.84 -22.51%), VCRA (19.12 -20.96%), MGNX (8.71 -20.82%)
• Industrials: REZI (9.36 -36.37%), GVA (26.25 -25.64%), TNET (50.31 -16.5%)
• Consumer Discretionary: SERV (42.2 -23.94%), HAS (96.01 -21.28%), SIX (43.16 -16%)
• Information Technology: NOK (3.78 -27.31%), CTS (27.89 -16.99%), NTGR (26.55 -16.59%), MXL (18.73 -16.31%)
• Utilities: PCG (5.00 -35.57%)

-=Nokia (NOK) reported earnings on Thur 24 Oct 19 (b/o)

Nokia reports EPS in-line, beats on revs; lowers FY19 and FY20 EPS guidance; pauses dividend

Reports Q3 (Sep) earnings of 0.05 per share, in-line with the S&P Capital IQ Consensus of 0.05; revenues rose 4.2% year/year to 5.69 bln vs the 5.59 bln S&P Capital IQ Consensus.

Co issues in-line guidance for FY19, sees EPS of eUR0.18-0.24 vs. 0.23 S&P Capital IQ Consensus, updated from EUR 0.25 - 0.29 prior.

Co issues downside guidance for FY20, sees EPS of eUR0.20-0.30 vs. 0.36 S&P Capital IQ Consensus, updated from EUR 0.37 - 0.42 prior.

On October 24, 2019, the Board resolved to not distribute the third and fourth quarterly instalments of the dividend for the financial year 2018, in order to: a) guarantee Nokia's ability to increase 5G investments, b) continue investing in growth in strategic focus areas of enterprise and software and c) strengthen Nokia's cash position. This is in accordance with Nokia's dividend policy, which states that dividend decisions are made taking into account Nokia's cash position and expected cash flow generation. Over the long term, Nokia continues to target to deliver an earnings-based dividend. The Board will seek a dividend authorization from the next Annual General Meeting, and will continue to review dividend distributions on a quarterly basis. The Board expects to resume dividend distributions after Nokia's net cash position improves to approximately EUR 2 billion.

Nokia’s share price tanked by nearly 25% at one point today—the biggest daily drop since at least 1991—after the Finnish telecom equipment vendor announced a sudden and acute shrinking of profit in its latest quarter. Slashing its profit outlook through 2020, Nokia said it would suspend its dividend for the next six months.

Making fancy new equipment for 5G installations is expensive, said CEO Rajeev Suri in published remarks (pdf). He also cited trouble raising prices—especially in China, where its sales have slumped—and the expense of absorbing Alcatel-Lucent, the French telecom equipment giant Nokia bought in 2016.

The beginning buildout of 5G—as this newest generation of mobile wireless network technology is known—was supposed to be a bonanza for Nokia. What gives?

Nokia’s challenges with 5G and Alcatel-Lucent are telling, as is the cratering of its network R&D, which fell 7% versus the same quarter a year ago. Its struggles encapsulate the intrinsic mismatch of corporate oligopoly and innovation.

Though hard to tell from its glum earnings, Nokia very literally dominates the telecom equipment market. It has only two major competitors: Stockholm-based Ericsson, and Huawei, which is headquartered in Shenzhen.

Unlike Ericsson, Nokia boasts an end-to-end suite of equipment and services. And, of course, Huawei has been sidelined from many key markets by government suspicious of possible ties to the Chinese government, and battered by US policies threatening to block its use of American technology as components in its systems.

-=Nokia (NOK) reported earnings on Thur 25 Oct 2018 (b/o)

Nokia beats by $0.01, reports revs in-line; reaffirms FY18 EPS guidance 

• Reports Q3 (Sep) earnings of 0.06 per share, 0.01 better than the S&P Capital IQ Consensus of 0.05; revenues fell 0.8% year/year to 5.46 bln vs the 5.43 bln S&P Capital IQ Consensus.
• Co reaffirms guidance for FY18, sees EPS of EUR 0.23-0.27 vs. 0.22 S&P Capital IQ Consensus.
  • Also sees EUR 0.37 - 0.42 in full year 2020
• Co also Nokia announces plans to accelerate strategy execution, sharpen customer focus, and maintain long-term cost leadership.
  • Better aligns structure to strategy with improved customer focus
  • Optimizes operating model to maintain competitive advantage
  • Positions company for long-term 5G leadership
  • Targets EUR 700m in non-IFRS annual cost savings by end of 2020
  • Reaffirms commitment to full-year 2020 non-IFRS operating margin and diluted earnings per share guidance for Nokia Group 

This week's biggest % winners & losers : Oct. 23 - 27, 17 (wk 43)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare: ALGN (235.94 +17.45%), AIMT (29.88 +16.45%)
• Materials: VHI (4 +19.05%), KRA (48.47 +15.43%)
• Industrials: ECHO (23.85 +23.26%), FIX (42.45 +16.78%), FCN (42.4 +15.09%)
• Consumer Discretionary: IMAX (24.9 +16.9%), BWLD (124.5 +15.44%)
• Information Technology: TWTR (21.68 +21.32%), FSLR (57.67 +20.83%), NQ (4.07 +19.01%), STM (23.29 +16.92%), LN (41.92 +14.91%), GRUB (60.02 +14.67%), POWI (84.35 +14.37%)
• Financials: GCAP (7.35 +19.51%), TREE (266.4 +18.98%)
• Telecommunication Services: IRDM (12.7 +14.41%)
• Utilities: DYN (11.22 +21.17%)

This week's top 20 % losers

• Healthcare: ACHC (33.25 -25.2%), ENDP (5.88 -23.83%), LMAT (31.26 -19.87%), CELG (98.17 -19.09%), CHRS (11.1 -18.98%), OMER (15.46 -18.42%)
• Materials: EGO (1.29 -40.55%)
• Industrials: ESND (9.86 -24.15%), HA (33.9 -18.51%)
• Consumer Discretionary: ENT (2.56 -20.4%), TAL (28.01 -19.77%), EXPE (123.79 -18.99%), LEXEA (46.15 -18.33%)
• Information Technology: TRVG (7.57 -30.49%), EFII (29.75 -30.13%), UCTT (24.28 -26.38%), AXE (68.9 -21.7%), NOK (4.91 -19.24%)
• Energy: OII (19.04 -23.26%)
• Telecommunication Services: I (4.77 -25.47%)

=Nokia (NOK) reported earnings on Thur 26 Oct 2017 (b/o)

Nokia beats by EUR0.03, misses on revs

• Reports Q3 (Sep) earnings of 0.09 per share, 0.03 better than the Capital IQ Consensus of 0.06; revenues fell 7.0% year/year to 5.54 bln vs the 5.64 bln Capital IQ Consensus.
  • Strong non-IFRS gross margin of 42.7% (40.0% in Q3 2016)
• Outlook
  • Nokia's Networks business - Decline in line with the primary addressable market in full year 2017
  • Operating margin: 8-10% in full year 2017

=Nokia (NOK) reported earnings on Thur 27 April 2017 (b/o)

Nokia reports EPS in-line, beats on revs:

• Reports Q1 (Mar) earnings of 0.03 per share, in-line with the Capital IQ Consensus of 0.03; revenues fell 3.8% year/year to 5.39 bln vs the 5.33 bln Capital IQ Consensus.
  • Nokia's Networks business: 6% year-on-year net sales decrease in Q1 2017 primarily due to IP/Optical Networks and Fixed Networks, with approximately flat net sales in Mobile Networks and Applications & Analytics.
  • Nokia Technologies: 25% year-on-year net sales increase in Q1 2017, primarily due to higher patent and brand licensing income and the acquisition of Withings, partially offset by the absence of licensing income related to certain expired agreements.
• Outlook
  • Nokia - Approximately EUR 1.2 billion of total annual cost savings to be achieved in full year 2018
  • Nokia's Networks - Net sales Decline in line with the primary addressable market in full year 2017

=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.

Nokia (NOK) reported earnings Thur 4 Aug 2016 (b/o)

** charts after earnings **

 

 Nokia reports EPS in-line, misses on revs :

• Reports Q2 (Jun) earnings of 0.03 per share, in-line with the Capital IQ Consensus of 0.03; revenues rose 91.3% year/year to 5.58 bln vs the 5.79 bln Capital IQ Consensus.
  • Nokia net sales increased 91% year-on-year, compared to Nokia standalone net sales, and increased 2% sequentially. On a constant currency basis, Nokia net sales would have increased 93% year-on-year, compared to Nokia standalone net sales, and 2% sequentially
  • Year-on-year discussion - The year-on-year increase in Nokia net sales in the second quarter 2016, compared to Nokia standalone net sales, was primarily due to growth in Nokia's Networks business and Group Common and Other, primarily related to the acquisition of Alcatel-Lucent, partially offset by non-IFRS exclusions.
• Outlook - Co supplied the following guidance
  • FY16 Capital expenditures ~EUR 650 million Primarily attributable Nokia's Networks business.
  • Nokia's Networks business FY16 net sales Decline YoY

Nokia (NOK) reported earnings on Thur 11 Feb 2016 (a/h)

** charts before earnings **

 

** charts after earnings **

 

Nokia beats by $0.03, reports revs in-line; proposes special dividend  :

• Reports Q4 (Dec) earnings of 0.15 per share, 0.03 better than the Capital IQ Consensus of 0.12; revenues rose 2.8% year/year to 3.61 bln vs the 3.58 bln Capital IQ Consensus.
  • 5% year-on-year net sales decrease in Q4 2015 and 3% net sales growth in full year 2015. On a reported basis, Greater China and Middle East & Africa were the strongest regions.
  • 170% year-on-year net sales growth in Q4 2015 and 77% net sales growth in full year 2015. On a year-on-year basis, non-IFRS operating profit grew 318% in Q4 2015 and 102% in full year 2015, primarily related to the growth in net sales resulting from a settled arbitration.
• Nokia's Board of Directors will propose a dividend of EUR 0.16 per share for 2015 and a special dividend of EUR 0.10 per share (dividend of EUR 0.14 per share for 2014). Proposed dividend is estimated to result in a maximum payout of approximately EUR 960 million in dividend and EUR 600 million in special dividend.
• Outlook:
  • Due to the very recent acquisition of Alcatel-Lucent (ALU), Nokia believes it is not appropriate to provide an annual outlook for the new combined Networks business at the present time, and intends to provide its full year outlook in conjunction with its Q1 results announcement.
  • Q1 2016 net sales and non-IFRS operating margin are expected to be influenced by factors including: A flattish capex environment in 2016 for overall addressable market; A declining wireless infrastructure market in 2016, with a greater than normal seasonal decline in Q1 2016
• Additionally, co announced that its Board of Directors has approved the Nokia equity program for 2016

Alcatel-Lucent (ALU) to be acquired by Nokia (NOK) for €15.6 billion ($16.6 billion)

• On 15 April 2015, Finnish telecommunications firm Nokia announced its intent to purchase its smaller French rival Alcatel-Lucent for €15.6 billion in an all-stock deal. The acquisition aimed to create a stronger competitor to the rival firms Ericsson and Huawei, whom Nokia and Alcatel-Lucent had surpassed in terms of total combined revenue in 2014. Acquisition completed in November 2016.