Yesterday, 3:32 AM
- "While 2014 was a year of reinvention, we see 2015 as a year of execution," announced Nokia's (NYSE:NOK) chief executive Rajeev Suri, saying the company was ready to take more steps to grow this year.
- Net profit in the three months to end-December quarter was €443M ($505M), or €0.11 a share, beating a median analyst forecast of €325M, or €0.09 a share.
- The stronger-than-expected quarterly profits was lifted by robust sales of latest-generation wireless telecom equipment in North America.
- Update: Nokia forecasts weakening profitability in 2015, saying adjusted operating margin at its network division will probably shrink this year.
- NOK -2.8% premarket
Wed, Jan. 28, 5:30 PM
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Wed, Jan. 14, 9:28 AM
- JPMorgan Cazenove (JPM's European bank) has hiked its Nokia (NYSE:NOK) target by €1 to €9 ($10.62), and predicted the company will benefit from a weak euro and a favorable royalty arbitration ruling against Samsung.
- The firm also thinks Nokia will beat Q4 EPS estimates when it reports on Jan. 29, thanks to better-than-expected margins, and sees the company renegotiating licensing deals to direct licensing agreements (could provide a 1% royalty) from fixed-price ones.
- BofA/Merrill named Nokia a top telecom equipment pick on Monday: It cited Samsung arbitration, improving Chinese patent monetization, U.S./European equipment share gains, and the ability to participate in industry consolidation; Alcatel-Lucent rumors have been swirling for a long time.
Tue, Jan. 13, 5:42 PM
Mon, Jan. 5, 9:57 AM
- With Greece and oil-related fears once more taking a toll, The Euro Stoxx 50 is down 2.1%, and many continental indices posting ~2% declines. U.S.-traded European tech and telecom names are performing much the same way.
- Tech decliners: NOK -4.2%. ALU -3.3%. SAP -2.9%. STM -2%.
- Telecom decliners: VOD -2.4%. TEF -4%. ORAN -3.6%. TI -2.2%. PT -6%.
Dec. 18, 2014, 9:59 AM
- Germany's Manager Magazin reports Alcatel-Lucent (ALU +4.8%) and Nokia (NOK +0.6%) have revived M&A talks this fall, and could agree to a merger or close partnership.
- Reuters reported a year ago Nokia was "discussing internally" whether it should pursue a tie-up with Alcatel-Lucent, after reaching a deal to sell its phone unit to Microsoft. The WSJ later reported Nokia had decided not to pursue an Alcatel deal for the time being.
- Nokia and Alcatel have considerable mobile infrastructure overlap, but a relatively limited amount of wireline equipment overlap. Alcatel's carrier IP networking (router/switch) ops are often seen as the company's most valuable asset.
- Nokia is currently worth $30B, and Alcatel $9.8B. The latter has been aggressively cutting costs.
Dec. 15, 2014, 5:38 PM
- Nokia's (NYSE:NOK) Here unit will power Baidu's (NASDAQ:BIDU) PC and mobile mapping services outside of China. The solution will cater to Chinese tourists traveling abroad.
- With Baidu's search services squaring off against Google's in non-Chinese markets, it might have been more comfortable partnering with a third party. The Baidu deal comes shortly after Nokia made Here's Android app available to all; it was previously offered only to Samsung users. An iOS app will launch in 2015.
- Separately, Nokia has announced Bernard Najm, an 18-year company vet, is its new Middle East/Africa chief. Najm succeeds Igor Leprince, who was recently named the company's Global Services chief.
Nov. 21, 2014, 1:10 PM| 14 Comments
Nov. 18, 2014, 10:25 AM
- The $249 Nokia N1, hinted at in a teaser image yesterday, features a 7.9" 2048x1536 display (similar to the retina iPad Mini's), an Intel Z3580 Atom CPU (quad-core, 2.3GHz.), an aluminum body, 32GB of storage, 8MP (rear) and 5MP (front) cameras, and stereo speakers.
- The tablet runs on Google's Android 5.0 and Nokia's (NYSE:NOK) Z Launcher (now available to all Android users) and is among the first devices to support Type-C USB cables (they look the same on both ends). It's due in China in February, and will hit Russia and certain European countries afterwards.
- Notably, Foxconn will manufacture the N1 and also license Nokia's brand; that could prevent Nokia from having to strike patent cross-licensing deals that could affect its IP licensing revenue. Nokia stated last week it's looking to license its brand for consumer products.
- "It's the first of many [consumer products] coming – more SKUs, more sizes, more features," says Nokia exec Ramzi Haidamus. "We will go beyond tablets for sure." The Microsoft deal prohibits Nokia from selling phones under its brand, but only until 2016.
Nov. 17, 2014, 10:17 AM
- Raymond James has downgraded Nokia (NOK -2.4%) to Underperform in the wake of its 2014 Capital Markets Day. The firm thinks expectations are too high for both Nokia's Networks and Technologies units.
- Nokia's Twitter account has posted an image of a black box (resembles a set-top or a Mac Mini), while suggesting the product will be unveiled tomorrow at Helsinki's Slush startup conference.
- David Einhorn bought back into Nokia in Q3: Einhorn's Greenlight Capital owned 7.8M Nokia shares at the end of Q3. Greenlight had a 3.5M-share Nokia position at the end of Q1, but unloaded it in Q2.
- Capital Markets Day coverage: I, II
Nov. 14, 2014, 12:30 PM
- Though Nokia (NOK -4.7%) hiked its Networks op. margin target range to 8%-11% from 5%-10%, some analysts wanted more. "The margin range in Networks should be seen as a bit bearish by some as the upper end already is priced into the estimates," says Nordea's Sami Sarkamies. Pohjola Bank's Hannu Rauhala was expecting 2015 op. margin guidance of 11%-12%.
- CEO Rajeev Suri: "I think you can expect our brand will return to the consumer world ... We see brand licensing as an opportunity ... But I would say it is more of a long-term opportunity." The remarks come shortly after Microsoft began using its own brand (rather than Nokia's) for its Lumia phones.
- Meanwhile, Suri calls the prospects for mobile network spending to be "flattish" in the coming years; Nokia has said it's aiming for Networks (depends heavily on mobile capex) to slightly outgrow the broader market long-term.
- Suri strikes a more positive tone regarding Nokia's IP licensing growth opportunity. "We haven’t yet tapped the full potential of our patent portfolio."
- Earlier: Nokia lower after providing 2015 guidance
Nov. 14, 2014, 8:04 AM
- In tandem with its 2014 Capital Markets Day (webcast), Nokia (NYSE:NOK) guides for 2015 Nokia Networks sales to be up Y/Y (no specific number is given). Networks' long-term op. margin target range has been raised to 8%-11% from 5%-10%; 2015 op. margin is expected to be in the new target range.
- Long-term, Nokia is aiming for Networks revenue to grow "slightly faster than the market." Yesterday, rival Ericsson forecast its total addressable market would see a 3%-5% CAGR from 2013-2017.
- The Here unit is also expected to see revenue grow Y/Y; its op. margin is expected to be in a 5%-10% range. Nokia Technologies (IP licensing) revenue is expected to be up, not counting expected Samsung arbitration revenue; the unit's opex is expected to "increase meaningfully."
- 2015 capex guidance is at €200M ($250M), financial income/expenses guidance at -€160M (-$200M), and Common Functions opex guidance at €120M ($150M).
Nov. 11, 2014, 5:42 PM
- Under an OEM agreement between the companies, SAP will "bundle base maps and content" from Nokia's (NYSE:NOK) Here mapping/navigation platform with its Hana in-memory database (often used for analytics/transaction-processing). SAP's customers will be "able to access this geo-content to develop and deploy geo-spatial applications."
- The companies declare pairing Here with Hana will allow companies to "geo-reference data points and visualize them on a map to obtain new insights, identify trends and explain root causes," as well as "track and manage the flow of goods, information or money to help plan and prioritize future efforts accordingly."
- Nokia has already shown an interest in creating analytics use cases for Here. Back in June, the company bought Medio Systems. creator of an analytics platform that tracks a user's mobile activity, and said it would use Medio's tech to "create contextual maps and location services that change according to the situation."
- SAP, for its part, has put much effort into creating a software/services ecosystem for Hana, which has become a key growth driver as the company contends with weak on-premise software license growth.
Nov. 4, 2014, 8:33 AM
- Bernstein has downgraded Nokia (NYSE:NOK) to Underperform, and cut its target by €0.60 to €4.90 ($6.13). The firm thinks expectations for Nokia's IP licensing and Here mapping/navigation ops are too high.
- Nokia's Here revenue rose 12% Y/Y in Q3 to €236M, with auto licenses and Microsoft revenue offsetting smartphone/PND weakness. Licensing division revenue rose 9% to €152M, partly due to Microsoft payments.
- Bernstein upgraded Nokia to Market Perform 14 months ago, shortly after the Microsoft deal was announced.
Oct. 23, 2014, 9:10 AM
Oct. 23, 2014, 4:54 AM
- Nokia (NYSE:NOK) shares +8.1% premarket after the telecom-equipment supplier reported net profit of €747M ($941M) compared with a €91M loss in the three months to end-September last year, helped also by a large tax gain in the quarter.
- The company says net sales increased to about €3.3B, the first annual rise since the first quarter of 2011, benefiting from the deployment high-speed mobile networks in North America and China.
- Nokia also gave a more bullish full-year financial outlook, saying it expects an operating profit margin slightly above 11%, having previously expected the margin at high single digits.
NOK vs. ETF Alternatives
Nokia Oyj is a mobile communications company. The Company has three business: Networks, HERE, and Technologies and four business segments: mobile Broadband and Global Services within Networks, HERE, and Technologies.
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