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 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

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!