Nokia Corporation (NOK)

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Nokia Was Expected to be Weak, 'But Not This Weak': UBS -- Market Talk
5:09 am ET April 25, 2019 (Dow Jones) Print
0909 GMT - Nokia 1Q earnings were expected to be weak, "but not this weak," says UBS. Revenues were in line with expectations but significantly weaker gross margins in the networks unit led to an Ebit loss of EUR59 million, significantly below consensus of EUR305 million, it says. The issue is clearly networks gross margins, UBS says. "The gross margin issue is broad based in networks with 'unfavorable product mix' and higher network deployment service sales (low margin)." EUR200 million of deliveries to North America weren't able to be recognized and Nokia has also now commented on higher competitive intensity as a risk factor. "Nokia has left its FY guidance unchanged (9%-12% Ebit margins) but given the weak 1Q we believe consensus Ebit could come down by 10%-15%." Shares trade 10% lower at EUR4.64 ([e-mail])

(END) Dow Jones Newswires

April 25, 2019 05:09 ET (09:09 GMT)