We expect the Finnish handset manufacturer, Nokia
Corporation ( NOK ) to beat
expectations when it reports its first-quarter 2013 results before
the opening bell on Apr 18, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Nokia Corporation is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP : Expected Surprise
Prediction or ESP (Read: Zacks Earnings ESP: A Better Method ), which
represents the difference between the Most Accurate estimate and
the Zacks Consensus Estimate, is +66.67%. This is a meaningful and
leading indicator of a likely positive earnings surprise.
Zacks #3 Rank (Hold) : Nokia Corporation
currently has a Zacks Rank #3. Note that the stocks with Zacks
Ranks of #1, #2 and #3 have a significantly higher chance of
beating the earnings.
The combination of Nokia Corporation's Zacks Rank #3 (Hold) and
+66.67% ESP makes us confident of a positive earnings beat on Apr
What is Driving the Better-Than-Expected
Nokia Corporation is poised for a better performance as the
company's Lumia handset continues to improve and lead the Windows
OS (operating system)-based smartphone market. Nokia's flagship
Lumia 920 currently dominates 14% of the market and has a slight
lead over Lumia 800.The company has resolved its issues related to
the unavailability of Lumia in retail stores, which has led to
The other Lumia devices are also performing well and Nokia
currently captures almost 80% of the Windows-based smartphone
market. Recently, NOK offloaded some of its non-core assets as part
of its restructuring measures that will enhance the company's
operational efficiency. However, BlackBerry, which has witnessed
significant customer switch for its latest BB10-based smartphone,
could contract Nokia's growth.
Other Stocks to Consider
Other companies you may consider on the basis of our model,
which have the right combination of elements to post an earnings
beat this quarter are as follows:
Research in Motion Limited ( BBRY ) currently has
an Earnings ESP of +500.00% and holds a Zacks Rank #2 (Buy).
AT&T Inc. ( T ) has an Earnings ESP
of +4.76% and carries a Zacks Rank #2 (Buy).
CBS Corporation. ( CBS ) currently has an
Earnings ESP of +1.47% and holds a Zacks Rank #2 (Buy).RESEARCH IN MOT (BBRY): Free Stock Analysis
ReportCBS CORP (CBS): Free Stock Analysis ReportNOKIA CP-ADR A (NOK): Free Stock Analysis
ReportAT&T INC (T): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment