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Nokia hits three-year low amid declining Networks business

Published 10/27/2016, 12:27 PM
Nokia hits three-year low amid declining Networks business
ALUA
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NOKIA
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  • Nokia (HE:NOKIA) has tumbled in U.S. trading, down 7.6% and setting a three-year low today, after reporting Q3 earnings that missed on revenues as the company tried to ride out a weak market while holding out for synergies from its Alcatel-Lucent (PA:ALUA) merger.
  • Revenues slipped 7% and missed expectations, as the Networks business fell 12%.
  • Net sales were weak in Mobile Networks (within Ultra Broadband Networks) and made up 80%f the decrease in the Networks business, it said. "IP Networks and Applications also contributed to the decrease. This was partially offset by growth in Fixed Networks within Ultra Broadband Networks."
  • "Nokia delivered solid third-quarter results," said CEO Rajeev Suri, though analysts largely said the report wasn't strong. The company targeted slight sequential improvements in Networks sales and operating margin and achieved those, he said.
  • But the road is set for similar declines ahead: "As we look forward, we expect [market] conditions to stabilize somewhat in 2017, with the primary addressable market in which Nokia competes likely to decline in the low single digits for that year."
  • Press Release

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