Nokia in Q3 2018: Why Analysts Are Estimating Lower



Revenue of $6.4 billion

Nokia (NOK) is expected to announce its third-quarter earnings on October 25. Analysts expect revenue of $6.4 billion compared to $6.46 billion in Q3 2017, indicating a year-over-year decline of 1%.

Revenue for its peer Cisco (CSCO) is expected to rise 6% in the current fiscal quarter. Revenues for Ericsson (ERIC) and Juniper Networks (JNPR) are expected to fall 4.2% and 6.5%, respectively, in their current quarters.

Nokia’s non-GAAP EPS is expected to fall 45% to $0.06, from $0.11 in the third quarter of 2017. Analysts have a low EPS estimate of $0.05 and a high estimate of $0.07.

Article continues below advertisement

Nokia beat estimates in two of the last four quarters

As you can see in the above chart, Nokia has managed to beat average analyst earnings and revenue estimates in two of the last four quarters. It reported EPS of $0.15 in the fourth quarter of 2017, which was 36.4% above the estimate of $0.11.

Its EPS of $0.11 in the third quarter of 2017 was 83% higher than the estimate of $0.06. In Q1 2018, its EPS of $0.02 was 50% below the estimate of $0.04. It met the average analyst earnings estimate of $0.04 in Q2 2018.

In this series, we’ll look at Nokia’s estimated revenue growth in 2018 and beyond. We’ll also look at its valuations and other important metrics.


More From Market Realist