Will Nokia Corporation's (NOK) Q3 Earnings Disappoint?
Zacks Investment Research | Oct 24, 2016 10:21PM ET
Networking giant, Nokia (HE:NOKIA) Corporation (NYSE:NOK) is scheduled to report third-quarter 2016 results on Oct 27, before the market opens.
Last quarter, Nokia’s earnings were in line with the Zacks Consensus Estimate. The company surpassed estimates in two of the last four quarters with the average earnings beat of 13.54%.
Factors at Play
Nokia has been investing heavily in new technologies and products. We expect these initiatives to have an adverse impact on the company’s bottom line due to increased costs. We are also concerned about the underperformance of the Networks unit. Moreover, the company is stiff competition from peers like Cisco Systems, Inc. (NASDAQ:CSCO) and Motorola Solutions Inc. (NYSE:MSI) . The company’s globally diversified operations also expose it to adverse foreign exchange movements.
However, we expect Nokia to gain from synergies created through its acquisition of Withings S.A. and Alcatel-Lucent (PA:ALUA). We are also impressed with the company’s new range of products in the wireless segment and collaboration with China Telecom for the enhancement of 4G coverage in China.
Earnings Whispers
Our proven model does not conclusively show that Nokia is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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