Seeking Alpha

Nokia (NOK) reverses course sharply after being higher earlier and is now -5.2% following its Q4...

Nokia (NOK) reverses course sharply after being higher earlier and is now -5.2% following its Q4 release. Despite net earnings of €202M - the company's first profit in six straight quarters - sales of €8.04B missed expectations of €8.12B and the company suspended its dividend.
Comments (22)
  • No dividends. ....
    24 Jan 2013, 08:18 AM Reply Like
  • I think the dividend issue is weighing on the stock heavier than the small sales miss. Income investors might be bailing.


    Long term I am bullish though. Retained earnings help them for the next quarters.
    24 Jan 2013, 08:20 AM Reply Like
  • Let the blood sucking shareholders out, and let the real value investors in. I would be worried if Nokia must sell asset to pay dividend!
    24 Jan 2013, 10:39 AM Reply Like
  • Nokia strategy is this, no div, hoard cash, contiue to say tough enviroment, keep the stock low, then, announce a buy back while the stock is cheap, thats what i would do if i was CEO.
    24 Jan 2013, 08:24 AM Reply Like
  • One can only hope.
    24 Jan 2013, 08:28 AM Reply Like
  • Actually, not sure if that is legal tho. Bordering on insider-trading/manipu... no? I am sure someone would sue if that is the case. Just to employ some lawyers.
    24 Jan 2013, 09:21 AM Reply Like
  • There is announcement on Reuters that the Nokia's Board will propose to authorize share repurchase. I would be rather to see buybacks at this price instead of paying a (taxable) dividend. If the price is undervalued (as I believe it is) and shares are not diluted, then it is good action.


    See the link
    24 Jan 2013, 03:06 PM Reply Like
  • But no dividends?
    24 Jan 2013, 08:30 AM Reply Like
  • Are you really that surprised?
    24 Jan 2013, 08:34 AM Reply Like
  • no div.. total payment in 2012 for dividends were 750million EUR.. no div should help restructuring cost.
    24 Jan 2013, 08:38 AM Reply Like
  • Come on they're priced for bankruptcy and just had a convertible bond issue of about the size of the potential dividend. It doesn't make sense.


    Wouldn't expect the dividend to return till *late* 2013 as sales improve.
    24 Jan 2013, 09:02 AM Reply Like
  • Elop's closing statement: "Focus into moving with the transition and providing more value to our shareholders". This is a long game.. css1971, you've seen this major drops many times. It has only been six months since its lowest POS. This is going to be a good, expecting a pop after this manipulation.
    24 Jan 2013, 09:06 AM Reply Like
  • Tech investing these days.... The same thing happened to INTC, AAPL... tech companies are having not bad earnings and tanking.


    I find it interesting as I wonder where this money is going looking for returns that will outperform technology sector.


    Long NOK by the way and don't care about the divvy. I suspect some of the recent runup was dividend harvesting, an annual div will likely attract a lot of that kind of action.
    24 Jan 2013, 08:48 AM Reply Like
  • I don't care about dividend! Nokia has turned into profit and the cost is STILL going down. NSN has a plan to refinance to reduce the borrowing cost, a phone plant in Vietnam is being built rather rapidly and the planned openning ceremony is April 2013. This would bring the cost down dramatically.


    I think from now on, it's about the growth and I expect in January 2014 we would see 17cent EPS which is about 100% growth Y/Y.


    I don't know if it worths the hype but I think if Nokia could introduce a tablet this year, the Ipad impressive performance would fade away rather fast.
    24 Jan 2013, 08:49 AM Reply Like
  • Goodbye income investors.
    24 Jan 2013, 09:21 AM Reply Like
  • often even when earnings report is, the stock still go down.
    24 Jan 2013, 09:31 AM Reply Like
  • Stock is down, sold some more puts today... great premiums to be had
    24 Jan 2013, 10:42 AM Reply Like
  • Surprise: Unlocked Lumia 620 already selling in USA for $289.99. Makes it to “Top selling” devices at Expansys.

    24 Jan 2013, 11:07 AM Reply Like
  • will this go under $3? What's your thoughts?
    24 Jan 2013, 03:04 PM Reply Like
  • Sorry I meant under 3 euros?
    24 Jan 2013, 03:06 PM Reply Like
  • Cancelling dividend is obvious a very good dicision under current situation. Good time to buy NOK.
    24 Jan 2013, 03:06 PM Reply Like
  • This is a good time to start firing people too. If your division doesn't meet certain sales metrics then your job is in jeopardy.


    Nokia employees need a complete maniac like Steve Jobs to keep them on their toes. Relaxation = sales stagnation.
    25 Jan 2013, 09:23 PM Reply Like
DJIA (DIA) S&P 500 (SPY)