Nokia was able to beat market expectations with its Q4 fiscal 2015 earnings, but its grim outlook prevented the stock from rising. During its earnings call, the company’s CEO warned investors about waning demand in China and some other markets. Interestingly, Nokia did not issue guidance for the ongoing quarter or the full year, suggesting that first quarter may be extremely tough for the company. As customers are likely to pull back their capex in light of the macroeconomic uncertainty, the company may not have much to work with. However, in the U.S., Nokia’s merger with the Alcatel-Lucent can help it offset the sluggishness in demand. Both Nokia and Alcatel-Lucent performed well in the recently concluded quarter, implying that both the companies are in good shape. The merger is in its final stages, as Nokia recently announced that it holds 91% of Alcatel-Lucent’s shares following the second round of its EUR 15.6 billion all-stock offer.   In China, Nokia is confident in its position, thanks to the combined installed base of Nokia and Alcatel Shanghai Bell, but a slowdown in 4G rollouts is a big concern.

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