Nokia Corporation (ADR) (NOK): Is Elop’s Seat as Red as the Quarterly Numbers?

Page 1 of 2

Nokia Corporation (ADR) (NYSE:NOK) investors, especially those like fund manager Jim Simons (see his full equity portfolio), have been waiting for CEO Stephen Elop’s prediction that the company would turn around in two years after he made the decision to drop the Symbian operating system in exchange for going all-in on Windows Phone by Microsoft Corporation (NASDAQ:MSFT). As the company is now passing that two-year mark, the rumbling that is heard emanatng from Espoo, Finland, is not the epicenter of an earthquake though Elop might be willing to fall into a hole in the Earth at this point.

Stephen ElopNo, that rumbling we are hearing is the growing impatience of investors, as Nokia Corporation (ADR) (NYSE:NOK) posted another very red quarter Thursday morning when it revealed its June quarterly earning report. So now the question might be, is the red color on that balance sheet symbolic of the hotness of the seat in which Elop is sitting? Might Nokia even survive as an independent company, or will this ratchet up the acquisition talk that has swirled around this company at various times?

As has been a pretty regular occurrence for the company, Nokia Corporation (ADR) (NYSE:NOK) took a loss of roughly $150 million for the quarter, through that was a smaller deficit than in past recent quarters.

And the loss was minimized depsite a significant drop in overall sales of smartphones and feature phones. The two bright spots for the company were its Nokia Siemens Networks division posting a profit for the fifth consecutive quarter, and the Windows Phone-based flagship Lumia line of handsets posted a significant growth numbers in the latest quarter, up nearly one-third from the previous quarter to about 7.4 million, though that was below the 8 million estimated by analysts.

Gross margins for the company dropped to 24.4 percent from 25.1 percent in the previous quarter, and that is partly due to the popularity of the entry-level Lumia 520 handset, which seems to have boosted Lumia sales overall but is a relatively low-margin device.

So on the one hand, it seems that Nokia Corporation (ADR) (NYSE:NOK) is having some successs with the Windows Phone OS and its Lumia devices, but clearly the feature-phone and smartphone markets have taken a hit on sales as evidence not just by Nokia itself, but also some negative numbers posted by Research In Motion Ltd (NASDAQ:BBRY) and HTC in their most recent reports. Where does that leave Nokia?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!