Nomura Securities maintains a 'Neutral' on Nokia (NOK); Couldn't Find a Silver Lining in Q1

April 19, 2012 9:59 AM EDT
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Nomura Securities maintains a 'Neutral' on Nokia (NYSE: NOK).

Analyst, Stuart Jeffrey, said, "Nokia results were in line with the company’s pre-announcement from last week, highlighting: 1) Acute pressure on Nokia’s Symbian smartphone portfolio – volumes fell 40% sequentially and gross margins fell below 15.6%; 2) Windows Phone sales have proven mixed, struggling in markets such as the UK, but apparently the Lumia 900 has had an encouraging start at AT&T; 3) Feature phones were hit at the high end from encroaching Android competition and all-touch feature phones' and 4) Nokia Siemens Networks margins fell to -5% on a weak revenue mix and low volumes."

Other noted: 1) Nokia is still targeting a greater than EUR 1bn reduction in device costs by end-2013 and now sees a EUR 900m impact by end-2012. Detail on further reductions was not given, nor was a split between opex and cost of goods sold; 2) Device sales fell 70% y-o-y in China, highlighting the Symbian pressures in this market; and 3) NSN restructuring charges totalled EUR 770m, which compares to EUR 110m for all 2011. Total charges for 2012 are estimated at EUR 1bn with a cash impact also of around EUR 1bn.

For an analyst ratings summary and ratings history on Nokia click here. For more ratings news on Nokia click here.

Shares of Nokia closed at $3.97 yesterday.

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