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