Nokia (NOK) To Report Q3 Earnings: What's In The Offing?
Zacks Investment Research | Oct 20, 2019 09:43PM ET
Nokia (HE:NOKIA) Corporation (NYSE:NOK) is scheduled to report third-quarter 2019 results before the opening bell on Oct 24. In the last reported quarter, the company delivered positive earnings surprise of 500%. Nokia topped the Zacks Consensus Estimate for earnings thrice in the trailing four quarters, with an average positive surprise of 89.3%.
Let’s find out how things are shaping up prior to the announcement —
Factors to Influence Results
During the third quarter, the Finnish telecom equipment maker witnessed robust progress in its expansion areas of Software and Enterprise coupled with excellent momentum in IP Routing business.
The company currently has 48 global 5G commercial contracts, including live networks in the United States, Latin America, Europe, Korea and Australia. It was chosen as the sole technology provider by Taiwan Star Telecom — a Taiwan-based mobile network operator — for expansion of Long-Term Evolution.
Further, Nokia communicated that China Mobile Communications Corporation has deployed its new AirScale mMIMO Adaptive Antenna. The company’s state-of-the-art solution has been formulated particularly for the massive bandwidth and coverage requirements of the Chinese market as it shifts to 5G technology. This is likely to have benefited the company’s performance in the to-be-reported quarter.
Despite all these collaborations and service enhancements, the Zacks Consensus Estimate for third-quarter total revenues is pegged at $6,307 million. Nokia reported revenues of $6,350 million in the prior-year quarter. Consequently, adjusted earnings per share are pegged at 7 cents. The company registered earnings of 7 cents a year ago.
Going forward, Nokia is well positioned for the ongoing technology cycle given the strength of its end-to-end portfolio. The company’s deal win rate is encouraging with notable successes in the key 5G markets of the United States and China. Its 5G revenues are expected to grow sharply, through 2019 and beyond, on the back of commercial deal wins to date.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Nokia this season. The combination of a positive Zacks Investment Research
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