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 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

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

Top 6 Cities For The Ultra Rich to Live in Comfort

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

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!