Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on NOKIA OYJ. We currently have 5 research reports from 1 professional analysts.
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Hope at last?
02 Feb 17
Nokia reported Q4 revenues of €6,715m, down 13% yoy at comparable as well as reported figures. The Ultra Broadband Networks segment went down by 14.7% yoy (€4,331m), with both sub-segments Mobile Networks (€3,787m, -13.6%) and Fixed Networks (€544m, -22.1%) being down; IP Networks and Applications came in at €1,737m, also down yoy (-12.1%), and leading the overall Networks business to be down by 14% yoy. Nokia Technologies displayed a massive decrease yoy (€309m, -25.2%) due to Q4 15 being boosted by the multi-year licensing agreement with Samsung. The non-IFRS gross margin came in at 42%, down 40bp yoy, for an IFRS gross margin of 40%. The adjusted EBIT margin came in at 14%, down 160bp yoy, for an IFRS EBIT margin of 4.8%, leading to an IFRS profit of €676m. For 2017, the company maintained a negative outlook for its addressable market, which is expected to decrease by 2.2%, as well as an operating margin of 8-10%; no guidance was provided for Nokia Technologies due to the current litigation with Apple. Capex is expected to be c. €500m.
Weak guidance in networks, but still better than Ericsson
27 Oct 16
Nokia reported Q3 revenues of €5,952m, down 6.9% yoy at comparable figures. The Ultra Broadband Networks segment went down by 12.7% yoy (€3,903m), due to a fall in Mobile Networks (€3,318m, -15%) partially offset by growth in the Fixed Networks business (€585m, +3.4% yoy); IP Networks and Applications came in at €1,420m, down yoy (-8.5%), while Nokia Technologies displayed a massive surge yoy (€353m, +108.9%) thanks to c. €100m of non-recurring sales related to the Samsung licensing agreement. The non-IFRS gross margin came in at 39.7%, up 200bp yoy, for an IFRS gross margin of 37.6%. The adjusted EBIT margin came in at 9.3%, down 140bp yoy, for an IFRS EBIT margin of 0.9%, leading to an IFRS loss of €139m. The company maintained its expectations of a decline in sales of its Networks business for 2016, although it specified that the cause was a decline in the overall addressable market. The net sales in this unit is expected to decline at the same pace as in Q3. The capex forecast has also been cut by €100m down to €550m. The nomination of Mr Kristian Pullola as new CFO was also announced, effective from 1 January 2017, as Mr Timo Ihamuotila will join ABB.
Even less growth, even more synergies: transition will last
04 Aug 16
Nokia reported Q1 revenues of €5,676m, down 10.8% yoy at comparable. Within the new reporting perimeter, the Ultra Broadband Networks segment went down by 11.5% yoy, due to a fall in Mobile Networks (€3,185m, -14.4%) partially offset by growth in the Fixed Networks business (€622m, +7.2% yoy); IP Networks and Applications came in at €1,421m, sharply down yoy (-10.8%), while Nokia Technologies declined yoy (€194m, -11.4%) but would have been up by 10% excluding the impact of non-recurring effects in Q2 15. The non-IFRS gross margin came in at 38.8%, down 60bp sequentially, for an IFRS gross margin of 36.3%. The adjusted EBIT margin came in at 5.8%, down 40bp sequentially, while the IFRS EBIT margin was a negative 13.6% with a loss of €790m, due to additional merger-related and restructuring costs. Non-IFRS net profit reached €171m, vs. an IFRS loss of €726m. The company maintained its expectations of a decline in sales of its Networks business for 2016, while the non-IFRS EBIT margin is now expected to be within a 7-9% range. The 2018 synergies objective is now set at €1.2bn vs. the previous mark of €900m.
Still difficult market conditions in wireless, which burden a solid execution
10 May 16
Nokia reported Q1 revenues of €5,603m, down 8.6% yoy at comparable. Within the new reporting perimeter, the Ultra Broadband Networks segment went down by 11.8% yoy, due to a fall in Mobile Networks (€3,116m, -15.5%) partially offset by growth in the Fixed Networks business (€613m, +13.3% yoy); IP Networks and Applications came in at €1,452m, slightly up yoy (+1.3%), while Nokia Technologies witnessed a sharp decline (€198m, -27.5%) due to strong non-recurring effects in Q1 15 which are now absent. The non-IFRS gross margin came in at 39.4%, up 250bp yoy, while the IFRS gross margin fell to 28.3% due to €651m of merger-related costs. The non-IFRS EBIT margin reached 6.2%, up 170bp yoy, while the IFRS EBIT margin was a negative 12.9% with a loss of €712m, due to additional merger-related costs. Non-IFRS net profit reached €139m, vs. an IFRS loss of €613m. The company expects a decline in sales of its Networks business for 2016, while the non-IFRS EBIT margin is expected to be above 7%. The 2018 synergies objective is now set above the €900m mark.
Licensing to offset networks, hampered by softening market conditions in Wireless
11 Feb 16
Nokia reported Q4 revenues of €3,609m, up 2.8% yoy at comparable perimeters but down 3% at constant exchange rates. Nokia Networks accounted for €3.20m, corresponding to a reported 4.6% decrease, while Nokia Technologies witnessed a 170% yoy increase thanks to the multi-year licensing agreement with Samsung. The IFRS gross margin came in at 46.4%, leading to a non-IFRS EBIT margin of 20.3%. The IFRS EBIT margin came in at 17.8%, up 590bp yoy thanks to the strong performance in Nokia Technologies (EBIT margin of 80.9%), boosted by the licensing agreement. Net profit reached €499m, for an EPS of €0.13 (€0.15 for the adjusted EPS). The company announced that the sale of HERE was successful, which translated into cash proceeds of €2.55bn. Concerning Alcatel, the company started combined operations in early January. The €900m of synergies are confirmed to be achieved in the full year 2018, while the €200m of annual interest expense reductions will be reached in 2016 instead of 2017. The exceptional dividend of €0.10 has been confirmed, while the normal dividend has been increased to €0.16. No guidance was provided for FY 2016, due to uncertainties caused by the acquisition of Alcatel. Q1 16 is expected to be impacted by headwinds in the wireless market, with a greater than normal seasonal decline.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
FY 2016 results confirm further strong delivery
21 Mar 17
Gamma’s FY 2016 revenues, Adjusted EBITDA and Adjusted EPS numbers were a touch ahead of our estimates. We make small upward adjustments to forecasts for all three years of our forecast horizon reflecting that performance. Gamma is capitalising on its position as a nimble player in an attractive marketplace. It made strong progress in 2016 as Voice over IP technology drove uptake of SIP Trunking and Hosted PBX services - both areas where Gamma has strong platforms. In addition, data services reflected Gamma’s investment in its network, channel partner numbers increased again and the indirect business accordingly showed strong revenue growth. The Direct Business also produced good growth and won some significant new contracts. The outlook statement is ’enthusiastic’ about the current year and comments that the Board ‘remains open to suitable M&A opportunities and areas for strategic capital investment’. Overall, an optimistic picture, in our view.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Panmure Morning Note 18-07-2016
18 Jul 16
We look for an in-line set of H1s from Spirent; this follows the Q1 beat. Look for good cash generation, good performance in the Networks division, ‘spotty’ at Wireless division, regionally growth in APAC offset by North America and EMEA customers who are “slow to release budgets”. Spirent should reaffirm the FY outlook – but will flag currency. Whilst the macro backdrop remains fragile, in truth Spirent is a story of getting its house in order and achieving better sales execution. We reiterate that our general investment view (Buy when others are frightened) has captured the zeitgeist and shares have performed well this year. That said there are some neat big picture drivers; 5G remains a prize being dangled as are the opportunities in IoT, high-speed data centre and driverless cars – indeed these should ensure that the shares pick up some Arm-related enthusiasm. Spirent enjoys an attractive valuation (2016E EV/Sales 1.1x, 7.0x EV/EBITDA) relative to sector peers (see table) despite sporting similar operating KPIs (see table). Our target price is 120p. Buy
Panmure Morning Note 13-06-2016
13 Jun 16
More news on 5G means a favourable read-across for the key 5G ‘name’ – Spirent. Today the Dutch Ministry of Economic Affairs has gathered 10 partner organisations together to run a 5G test in North Groningen – tests to be carried out at the end of the year. This is favourable for Spirent as it illustrates that 5G is getting closer and with it raises the possibilities of earlier revenue opportunities for Spirent. Short term is good for share sentiment. We retain our Buy.
Signs of recovery after a difficult 2016
08 Mar 17
As flagged by the recent trading update, group FY 2016 revenue slipped 7% YoY to $90.4m; 43% ($38.5m) of this came from Telecoms, which saw the majority of the decline in revenue as the legacy copper-based equipment sales continue to be wound down. The Bio-Medical division sales slipped just 2% YoY to $51.6m; a poor year from sterilization being compensated for by growth in diagnostics. While gross margins remained firm in both divisions (40% and 25% respectively), both slipped into operating loss; a hefty $2.2m from Telecoms (due to the loss of revenue from contracts) and $0.3m from Bio-Medical; however, the $2.5m operating loss was covered by an exceptional $3m profit on sale of a property. That sale helped cash; $1m received from operations was offset by $6m capex but cash from the sale of assets lifted BATM’s net cash from $21m to a welcome $23m at the year end.