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Nokia Cuts Q1 Devices and Services Outlook; Shares Tumble (NOK)

By Dividend.com,  April 11, 2012, 09:11:24 AM EDT

Embattled mobile phone maker Nokia Corporation ( NOK ) on Wednesday cut its first quarter outlook for its devices and services segment, sending its shares plunging lower in premarket trading.

The Espoo, Finland-based company said it lowered its expectations due to "competitive industry dynamics" that resulted in lower sales in India, the Middle East, Africa and China. For that segment, NOK said operating margins would fall by 3%, down from a previous breakeven estimate.

For the second quarter, the company noted operating margin would be "similar or below" to the first quarter.

CEO Stephen Elop called the news "disappointing," and said Nokia's devices and services business "continues to be in the midst of transition." The company is slated to report first quarter earnings results on Thursday, April 19.

Nokia shares plunged 80 cents, or -16%, in premarket trading Wednesday.

The Bottom Line
Shares of Nokia ( NOK ) have a 5.17% dividend yield, based on last night's closings stock price of $5.03. The company recently cut their dividend in half and may need to take another look again at cutting further. The stock has technical support in the $4 price area. If the shares can firm up, we see overhead resistance around the $6 price level.

Nokia Corporation ( NOK ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: NOK



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