Nokia Estimated by BMO to Pare Declines in 2017, 2018 Networks Revenue vs. 2016's 11% Drop

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Nokia ( NOK ) is expected by BMO Capital Markets to post a 6% drop in networks revenue for 2017 in what the firm anticipates was a "less negative performance" than in 2016, when the network and internet-protocol infrastructure and software company's networks revenue fell 11%.

BMO expects further improvement in 2018 to result in a 4% decline in networks revenue. It noted a bottoms-up capital-expenditures model implies similar improvement, with Nokia wireless hardware sales estimated to be down by 9.3% in 2017 and only 1.4% in in 2018.

The expectations for improvement come as BMO noted Nokia "is better exposed to higher-growth market areas," with nearly 50% of networks revenue excluding services outside the mobile subsegment.

Still, the firm expects Nokia will have lost some market share in 2017, estimating its share at 25.0% of equipment sales, down from the 26.1% reached together in 2016 by Nokia and Alcatel-Lucent, which Nokia acquired in November 2016. But for 2018, the firm expects the share losses to abate, with its estimate at 25.1%.

BMO maintained its investment rating on Nokia's shares at market perform.

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

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This article appears in: Investing , ETFs
Referenced Symbols: NOK

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