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Nokia (NOK) Q3 Earnings: Will Networks Unit Affect Results?
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Nokia Corporation (NOK - Free Report) is scheduled to report third-quarter 2017 financial numbers on Oct 26, before the market opens.
Last quarter, the company reported a positive earnings surprise of 125%. The company’s earnings per share of €0.08 (approximately 9 cents) beat the Zacks Consensus Estimate of 4 cents. Earnings improved significantly from the year-ago figure as well. Net sales of €5.6 billion (approximately $6.18 billion) surpassed the Zacks Consensus Estimate of $5.98 billion but fell short of the year-ago figure of approximately $6.31 billion.
Let’s see how things shape up for this announcement.
Factors Likely at Play
The disappointing performance of Nokia’s primary division, the Networks unit, is likely to hurt results in the third quarter. Similar to the previous quarter, the top line might be affected this time around too due to below-par performance of Nokia’s flagship division.
Also, the top line in the third quarter might be hampered by adverse foreign currency movements since the company operates globally.
Due to the above headwinds, shares of the company have declined 2.1% in the last three months, underperforming the industry’s decline of 0.6% during the period.
However, Nokia’s dispute settlement with Apple (AAPL - Free Report) has been aiding the company. This holds promise for the quarter to be reported as well.
In addition, Nokia’s acquisition of Comptel earlier in June is likely to drive results in the third quarter. The buyout has boosted Nokia’s software portfolio by adding capabilities that help digital service providers deliver new communications services to the market faster.
Earnings Whispers
Our proven model does not conclusively show that Nokia is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as elaborated below.
Zacks ESP: Nokia has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 6 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nokia has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against all Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Investors interested in the broader Computer and Technology sector may consider the following stocks that possess the right combination of elements to come up with an earnings beat this time around:
AMTEK, Inc. (AME - Free Report) has an Earnings ESP of +0.54% and also carries a Zacks Rank of 3. The company will report third-quarter earnings numbers on Nov 2.
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Nokia (NOK) Q3 Earnings: Will Networks Unit Affect Results?
Nokia Corporation (NOK - Free Report) is scheduled to report third-quarter 2017 financial numbers on Oct 26, before the market opens.
Last quarter, the company reported a positive earnings surprise of 125%. The company’s earnings per share of €0.08 (approximately 9 cents) beat the Zacks Consensus Estimate of 4 cents. Earnings improved significantly from the year-ago figure as well. Net sales of €5.6 billion (approximately $6.18 billion) surpassed the Zacks Consensus Estimate of $5.98 billion but fell short of the year-ago figure of approximately $6.31 billion.
Let’s see how things shape up for this announcement.
Factors Likely at Play
The disappointing performance of Nokia’s primary division, the Networks unit, is likely to hurt results in the third quarter. Similar to the previous quarter, the top line might be affected this time around too due to below-par performance of Nokia’s flagship division.
Also, the top line in the third quarter might be hampered by adverse foreign currency movements since the company operates globally.
Due to the above headwinds, shares of the company have declined 2.1% in the last three months, underperforming the industry’s decline of 0.6% during the period.
However, Nokia’s dispute settlement with Apple (AAPL - Free Report) has been aiding the company. This holds promise for the quarter to be reported as well.
In addition, Nokia’s acquisition of Comptel earlier in June is likely to drive results in the third quarter. The buyout has boosted Nokia’s software portfolio by adding capabilities that help digital service providers deliver new communications services to the market faster.
Earnings Whispers
Our proven model does not conclusively show that Nokia is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as elaborated below.
Zacks ESP: Nokia has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 6 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nokia has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against all Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Nokia Corporation Price and EPS Surprise
Nokia Corporation Price and EPS Surprise | Nokia Corporation Quote
Stocks to Consider
Investors interested in the broader Computer and Technology sector may consider the following stocks that possess the right combination of elements to come up with an earnings beat this time around:
AMTEK, Inc. (AME - Free Report) has an Earnings ESP of +0.54% and also carries a Zacks Rank of 3. The company will report third-quarter earnings numbers on Nov 2.
Arrow Electronics, Inc. (ARW - Free Report) has an Earnings ESP of +1.11% and holds a Zacks Rank #2. The company will also report third-quarter earnings numbers on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>