Here are highlights from Thursday’s Analyst Blog:
Nokia’s Long Nightmare Continues
$9,561 million $10,053 million $1,200 million 33 cents $300 million 12 cents 11 cents 6 cents
On the other side, the company’s low-end offerings are facing intense competition from low-cost touch screen phones, predominantly from Asian manufacturers.
$1,742 million $571 million
Devices & Services Segment
$5,520 million $2,215 million $3,004 million $301 million
$186 million $43
Nokia Siemens Network Segment
$3,831 million $191 million $5 million
Location & Commerce Segment
$360 million $47 million $21 million
For the second quarter of 2012, Nokia expects its Devices & Services operating margin to be similar to that of the first quarter of 2012 or may be negative 3%. Nokia further expects to reduce the operating expense in this segment by more than €1 billion by 2013 from the 2010 level of €5.35 billion.
We remain quite skeptical regarding the success of the Nokia-Microsoft mobile venture. We believe the company will face margin pressure throughout 2012 mainly due to a highly competitive industry dynamics.
We, therefore, retain our long-term Underperform recommendation on Nokia. Currently, Nokia has a Zacks #5 Rank, implying a short-term Strong Sell rating on the stock.
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SOURCE Zacks Investment Research, Inc.