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Nokia Announces Expected Licensing Rate for 5G SEP Portfolio
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Nokia Corporation (NOK - Free Report) recently announced its licensing rate expectations for 5G mobile phones. The company said that it continues to innovate in 5G and remains optimistic about gaining a significant position in standard essential patents (SEPs), once the finalization of 5G standards is done later this year.
For mobile phones, which implement the 5G New Radio standard, the company expects that the rate will be capped at 3 euros per device for a licence to its 5G SEP portfolio. Also, apart from mobile phones, the company expects to find various end-user devices, leveraging Nokia innovation. Notably, for other categories of devices, the company is likely to engage in discussion with related industry participants for defining the licensing models that will suit those industries. The licensing rates for these devices will be set separately.
Although, Nokia has successfully become a leading player in the mobile and fixed network infrastructure, the soft market conditions in North America are negatively impacting the company’s top-line performance. Also, the continued below-par performance of the company’s primary division — the Networks unit — is concerning. Notably, revenues at the unit declined 6% year over year in the second quarter of 2018.
In the past six months, this Zacks Rank #4 (Sell) stock has lost 7.5% against industry’s growth of 5%.
Moreover, the company has considerable operations in geographies outside the United States. Its significant international presence exposes it to political and economic disruptions, which can directly impact its profits. In addition, adverse impact of foreign currency movement remains a cause of concern for the company.
At present, when the economy in Europe is highly unpredictable post the Brexit referendum, it becomes difficult for the company to increase revenues and reduce costs. In addition, Nokia is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering productivity of the company.
Sonus Networks exceeded estimates in each of the preceding four quarters with an average positive earnings surprise of 168.11%.
QUALCOMM surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 19.75%.
Clearfield outpaced estimates in each of the preceding four quarters with an average earnings surprise of 52.78.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Nokia Announces Expected Licensing Rate for 5G SEP Portfolio
Nokia Corporation (NOK - Free Report) recently announced its licensing rate expectations for 5G mobile phones. The company said that it continues to innovate in 5G and remains optimistic about gaining a significant position in standard essential patents (SEPs), once the finalization of 5G standards is done later this year.
For mobile phones, which implement the 5G New Radio standard, the company expects that the rate will be capped at 3 euros per device for a licence to its 5G SEP portfolio. Also, apart from mobile phones, the company expects to find various end-user devices, leveraging Nokia innovation. Notably, for other categories of devices, the company is likely to engage in discussion with related industry participants for defining the licensing models that will suit those industries. The licensing rates for these devices will be set separately.
Although, Nokia has successfully become a leading player in the mobile and fixed network infrastructure, the soft market conditions in North America are negatively impacting the company’s top-line performance. Also, the continued below-par performance of the company’s primary division — the Networks unit — is concerning. Notably, revenues at the unit declined 6% year over year in the second quarter of 2018.
In the past six months, this Zacks Rank #4 (Sell) stock has lost 7.5% against industry’s growth of 5%.
Moreover, the company has considerable operations in geographies outside the United States. Its significant international presence exposes it to political and economic disruptions, which can directly impact its profits. In addition, adverse impact of foreign currency movement remains a cause of concern for the company.
At present, when the economy in Europe is highly unpredictable post the Brexit referendum, it becomes difficult for the company to increase revenues and reduce costs. In addition, Nokia is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering productivity of the company.
Key Picks
Some better-ranked stocks from the same space are Sonus Networks, Inc. (RBBN - Free Report) , QUALCOMM Incorporated (QCOM - Free Report) and Clearfield, Inc. (CLFD - Free Report) . While Sonus Networks sports a Zacks Rank #1 (Strong Buy), QUALCOMM and Clearfield carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sonus Networks exceeded estimates in each of the preceding four quarters with an average positive earnings surprise of 168.11%.
QUALCOMM surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 19.75%.
Clearfield outpaced estimates in each of the preceding four quarters with an average earnings surprise of 52.78.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>