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Nokia Weighed Down By Market Weakness

Nokia's Q3 earnings fell sharply, worse than expected, leading to a 7% fall in its stock. The company is now trading at a three year low. Nokia blamed a slowdown in the network wireless market and declining demand for 4G equipment for its lackluster performance. The company even warned of a further slowdown in the coming year, adding to investors' concern. A significant improvement for Nokia's networks business in the near term is unlikely, given that its major source of revenues is a market that is losing its steam. The wireless infrastructure domain is going through a lull with global telecos not spending much on wireless networks. And the market is unlikely to present significant opportunities for the three majors (Nokia, Ericsson and Huawei) until a new cycle of network upgrades begins. The Finnish company's merger with Alcatel-Lucent is complete but apparently it has yet to spwn the exected benefits. This is evident from the fact that Nokia did not compare its detailed results on a year-on-year basis with the combined companies results as it did in the first two quarters post the completion of the merger.

Here's a quick snapshot of Nokia's results:

nokia q3 results

*Based on combined company results

Have more questions about Nokia? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Nokia

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


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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