Beleaguered Nokia reports lower-than-expected revenue, Needham downgrades

“Shares of Nokia (NOK) are down following a Q2 report this morning that included lower-than-expected revenue, but a break-even profit line where the Street had expected a loss,” Tiernan Ray reports for Barron’s.

“The stock gets one downgrade so far today, from Needham & Co.‘s Charlie Wolf, who cut his rating on the shares to Hold from Buy,” Ray reports. “Wolf cut his estimate this year to €25.39 billion in revenue from a prior €30.41 billion previously, and cut his EPS estimate to 11 cents from 30 cents. For next year, he sees €29.08 billion and 25 cents a share, down from his prior €35.93 billion and 50 cents.”

Ray reports, “The results were ‘disappointing on virtually every dimension,’ he writes, and the decline in sales in the company’s ‘devices and services’ division, which sells the ‘Lumia’ line of smartphones running Microsoft‘s (MSFT) Windows Phone operating system, is enough to ‘raise the larger question whether consumers are even interested in a viable third platform in the smartphone market.'”

Read more in the full article here.

Related article:
Microsoft and Nokia can’t hide from the very, very ugly truth: Windows Phone is failing miserably – July 18, 2013

7 Comments

    1. Actually, Nokia are making some excellent mobile phones, Lumia 1020 just announced with a 41MP camera.

      I have been using every generation of iPhone since the 2007 original.

      I had a chance to use a Lumia 820 running Windows Phone 8 and I have to say, it’s actually a really good OS on a very solid mobile phone. The AMOLED display is excellent for my eyes (I can use it without my glasses).

      After a few days use, going back to my iPhone 5, made iOS 6 look dated and clunky (I can’t believe I said that, but it’s true).

      The problem here in the UK is the mobile phone shops have working examples of iPhone and Samsung Galaxy & Android, not Nokia or Windows Phone 8. They have dummy models, but that does’t really cut the mustard with alternative OS working models.

      The Nokia Lumia 820 is a great phone with better specs and the signal in my area on the same network as my iPhone 5: Lumia 820 Full 5Bar signal on O2, iPhone 5 only 3 bars.

      I’m an Apple user for 10 years, I too derided the competitors offerings, but actually Microsoft and Nokia have got a good product going. You can get a Nokia 520 smartphone with full Windows Phone 8 functionality for £100 SIM free. It’s selling fast because it too is an excellent little phone.

      Not trolling, but go on and start the close minded insults!

    1. What is the whole story??? MDN copied/pasted the first three paragraphs of the article. The rest of the article just elaborated on the points made in the first three paragraphs.

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