) reported first-quarter 2014 financial results wherein the
bottom line surpassed the Zacks Consensus Estimate, while the top
line missed the same. Stiff competition from
) iPhones and
) Android-based smartphones have compelled Nokia to sell its
Device business to
) for $7.5 billion on Apr 25, 2014. Nokia currently has a Zacks
Rank #1 (strong Buy).
Quarterly net income from continuing operations came in at
approximately $152.3 million or 4 cents per share compared with a
net loss of $359 million or 9 cents per share in the prior-year
quarter. However, quarterly adjusted (excluding special items)
earnings per share of 6 cents were better than the Zacks
Consensus Estimate of 4 cents.
On the other hand, quarterly net revenue stood at
approximately $3,688 million, a stiff year-over-year fall of 15%
and also lagged the Zacks Consensus Estimate of $3,987 million.
Quarterly adjusted gross margin was 45.7% in first-quarter
2014 compared with 39.3% in the prior-year quarter. Adjusted
operating margin, in the reported quarter, was 9.1% as against a
negative 1% in the year-ago quarter.
At the end of the first quarter of 2014, Nokia had
approximately $2,908 million of net cash and marketable
securities compared with $3,185 million at the end of
Nokia Solutions and Networks Segment
Quarterly total revenue was approximately $3,223 million in
first-quarter 2014, down 17% year over year. Quarterly adjusted
operating profit was approximately $299 million, up 10% year over
year. However, adjusted operating margin was 9.3% compared with
7% in the prior-year quarter.
Quarterly total revenue was approximately $290 million in
first-quarter 2014, down 3% year over year. Quarterly adjusted
operating profit stood at $138 million against a negative $7
million in the prior-year quarter. Adjusted operating margin was
4.8% against a negative 2.3% in the year-ago quarter.
Advanced Technology Segment
Quarterly total revenue was approximately $181 million in
first-quarter 2014, up 7% year over year. Quarterly adjusted
operating profit was approximately $119 million, up 18% year over
year. Adjusted operating margin was 65.6% compared with 59.3% in
the prior-year quarter.
For fiscal 2014, adjusted operating margin for the Nokia
Solutions and Networks segment is likely to be in the higher-end
of the 5%-10% range.
Capital Restructuring Program
Nokia has initiated a Euro 5.0 billion (approximately $6.9
billion) capital restructuring program. The company intends to
initiate a Euro 1.25 billion share buy-back program and will pay
a special dividend of Euro 0.26 per share totaling Euro 1
billion. The remaining Euro 2.75 billion will be utilized to
reduce debt level.
APPLE INC (AAPL): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis
NOKIA CP-ADR A (NOK): Free Stock Analysis
To read this article on Zacks.com click here.