Nokia Earnings Preview: Networks Should Drive Growth

Nokia is scheduled to release its Q4 2015 results on February 11th. The results will largely depend on the performance of its Networks segment, which accounts for about 60% of the company’s value, per our estimates. Not only do we expect the segment to sustain its sturdy revenue growth momentum, we expect operating margins to swell. Nokia’s strong position in China, a recovery in carrier spending in the U.S. and a hefty order pipeline can help the company’s top line, although the recent economic slowdown in China may have an offsetting impact. On the bottom line front, Nokia has seen tremendous sequential improvement during the first three quarters, which it expects to continue in Q4 as well. Despite the added pressure from low margin China deals and a shift in mix of global services, the company can push its margins upwards on the back of radio and core network technologies and cost efficiency efforts.

from Forbes – Tech http://ift.tt/1SIJMZC
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