Nokia Beats on Both Top and Bottom Lines
Jul 20th 2012 12:43PM
Updated Jul 20th 2012 12:50PM
Nokia (NYS: NOK) reported earnings on July 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Nokia beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share expanded.
Margins contracted across the board.
Nokia reported revenue of $9.56 billion. The 36 analysts polled by S&P Capital IQ predicted revenue of $9.30 billion on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $13.47 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 -$0.10. The 14 earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share. GAAP EPS were -$0.48 for Q2 against -$0.15 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 23.6%, 720 basis points worse than the prior-year quarter. Operating margin was -7.4%, 650 basis points worse than the prior-year quarter. Net margin was -18.7%, 1,470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.80 billion. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $37.16 billion. The average EPS estimate is -$0.35.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,854 members out of 3,189 rating the stock outperform, and 336 members rating it underperform. Among 597 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 527 give Nokia a green thumbs-up, and 70 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 $3.07.
The game is changing for makers of communications equipment, and some of the old guard may not make it. Where will Nokia fit in? Who's going to lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Nokia to My Watchlist.
The article Nokia Beats on Both Top and Bottom Lines originally appeared on Fool.com.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. 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.
Copyright Â© 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.