Stay on the Sidelines with Nokia (NOK) Into Q2 Results - Analyst
Tweet Send to a Friend
Get Alerts NOK Hot Sheet
Price: $3.73 +1.08%
Rating Summary:
10 Buy, 14 Hold, 15 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
10 Buy, 14 Hold, 15 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade NOK Now!
D-day has arrived for Nokia Corporation (NYSE: NOK), with the company scheduled to post second quarter results on Thursday, July 19th. Everything that could go wrong for the company appears to have and investors aren't happy.
Analysts at Wedbush weighed in on the expected results, saying they see Q2 numbers in-line with estimates and the expected management comments will similar to those made on 6/14/2012 when the company made several announcements, including a reduction in headcount of 10K, changes in leadership, disposition of luxury phone unit Vertu, acquisition of Scalado, and incremental OPEX reductions of EUR 1.6B by end 2013.
Specifically, the firm sees net sales of $9.3 billion and adjusted LPS of ($0.11). This is in line with the consensus expectations for net sales of $9.3 billion and adjusted LPS of ($0.11), the firm notes.
Commenting on news the company will halve the price of the Lumia 900 in the U.S., the firm said this may indicate continued pressure on Nokia’s smartphone sales ahead of Window Phone 8 devices later in 2012. "We view this as a response to sluggish sales and reported non-compatibility with Windows 8," analyst Scott Sutherland said. "While Nokia/Microsoft are positioned to be a third viable ecosystem, we retain some concerns around the success of Windows 8 phones going head to head against the iPhone 5 this fall and sluggish smartphone sales in Europe (32% of revenue)."
The firm said Nokia has a long road ahead for the turnaround and would recommend staying on the sidelines.
Wedbush maintained their Neutral rating and $2.50 price target.
For an analyst ratings summary and ratings history on Nokia click here. For more ratings news on Nokia click here.
Shares of Nokia are down 0.54 percent Monday afternoon to $1.83.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analysts at Wedbush weighed in on the expected results, saying they see Q2 numbers in-line with estimates and the expected management comments will similar to those made on 6/14/2012 when the company made several announcements, including a reduction in headcount of 10K, changes in leadership, disposition of luxury phone unit Vertu, acquisition of Scalado, and incremental OPEX reductions of EUR 1.6B by end 2013.
Specifically, the firm sees net sales of $9.3 billion and adjusted LPS of ($0.11). This is in line with the consensus expectations for net sales of $9.3 billion and adjusted LPS of ($0.11), the firm notes.
Commenting on news the company will halve the price of the Lumia 900 in the U.S., the firm said this may indicate continued pressure on Nokia’s smartphone sales ahead of Window Phone 8 devices later in 2012. "We view this as a response to sluggish sales and reported non-compatibility with Windows 8," analyst Scott Sutherland said. "While Nokia/Microsoft are positioned to be a third viable ecosystem, we retain some concerns around the success of Windows 8 phones going head to head against the iPhone 5 this fall and sluggish smartphone sales in Europe (32% of revenue)."
The firm said Nokia has a long road ahead for the turnaround and would recommend staying on the sidelines.
Wedbush maintained their Neutral rating and $2.50 price target.
For an analyst ratings summary and ratings history on Nokia click here. For more ratings news on Nokia click here.
Shares of Nokia are down 0.54 percent Monday afternoon to $1.83.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Says Tesla (TSLA) 'Top Pick in U.S. Autos'
- Wells Fargo Downgrades Aruba Networks (ARUN) to Market Perform
- Goldman Sachs Describes Cisco (CSCO) Q3 as 'Breakout Performance'
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
Layoffs
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
