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:
*Based on combined company results
Have more questions about Nokia? See the links below:
- What Is Nokia’s Revenue & Net Income Breakdown In Terms of Different Segments?
- How Has Nokia’s Revenue & Cash Profit Composition Changed In The Last Five Years?
- By How Much Have Nokia’s Revenue & EBITDA Changed In The Last Five Years?
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