They reported 514M up from 263M. Suri at the CC said it wasn't limited to Sprint but was balanced across the board and included with Verizon & Tmobile etc.
yes and this is why Nokia needs to build out its AT/IP division, there's no way to monetize unless you transform your R&D section into an IP licensing business..and that takes the opex that everyone is freaking out over for all the wrong reasons
stock buyback and also the 2B to pay back the msft loan they used to buyout NSN
from today's report:
q4/2014 net cash 5023, total cash 7715
q4/2013 net cash 2309, total cash 8971
my my what a difference a year makes...junk? no.
even if you discount all of IP all of HERE, Nokia is making 500M per quarter, 2B per year, and nothing indicates that this will stop anytime soon. That is the lesson from today's report. Anything Nokia can get from Samsung and IP is EXTRA. 2B in free cash flow generation per year is nothing to sneeze at.
I try to find some negative in today's report, I find nothing. The estimates are conservative as it always are, the divi is in line with standard EU company's practice, the higher AT opex is expected since Suri told us they would build up the IP business last quarter.
recall that Ericsson has operating margins of 6%, 1/2 of Nokia's; and lying about losing market share in N. America on top of that Nokia's N. American earnings DOUBLED, do you realize how rare that is?
Nokia earned 1B in the last 2 quarters, it will earn 2B this year, anything from Samsung will be EXTRA
and yet you cannot argue with the fact that Nokia earned 1B in the last 2 quarters...and there is nothing to indicate that this pace of free cash flow generation will stop...even if no Samsung deal, even if nothing new on IP even if HERE drops off the planet, Nokia is now earning 500m per quarter and nothing to indicate this will end any time soon.
I try to find a negative in the report to justify reducing my position, I can find nothing. Nokia has always been conservative, they set realistic targets that they can meet and exceed. The dividend is the normal 50% of earnings payout common to most EU companies. All the yoy and qoq numbers were fantastic.
Nokia made 500mil last quarter and it was sold off, Nokia made 500mil this quarter and it was sold off...and yet Nokia is still 1B richer, the shorts are swimming against the tide on this one
if there was something behind it we would have heard more by now....the single report out of Germany was not confirmed by anyone...and given Nokia's doubling of earnings in N. America, there is little reason to acquire anything from ALU...the entire rationale behind that rumor was in order for Nokia to expand its N. American market share...given today's report do you seriously think Nokia needs to?
markets have been selling Nokia off for 2 quarters, and yet they are 1B EUR richer in that time, something will have to give if Nokia continues to execute at this rate
IMO this is an indication that Nokia is serious about monetizing it's IP, how else can you do it? Infringers are not going to come to you and hand over money. Analysts are saying it's now about how much of its IP Nokia will be able to monetize...well how else are they going to do it unless they expand their infrastructure and invest in the IP/AT business? I just don't understand the illogic penalizing Nokia because it's finally serious about monetizing its IP.
1/2 of prior year's earnings in dividend is standard to almost all European companies...I don't see anything strange in this. If Nokia later wants to return more capital to shh, I would hope they're bright enough to increase their buyback plan instead of thru dividends which are taxed.
Yeah I don't know how they can pump Ericsson up today, up 3% when clearly Eric has been lying about the N. America situation given Nokia's results today
Nokia networks revenues increased half a billion in one quarter, from 3.3 to 3.8B EUR, their earnings out of N. America DOUBLED, hard to dismiss these numbers
In early responses from the Street, Adnaan Ahmad of Berenberg reiterates a Buy on the stock, and an #$%$8.40 price target on the ordinary shares, writing that with the networks profit in place, the big issue is how the intellectual property business does:
makes no sense, when Ericsson trading at double the p/e of Nokia with 1/2 of Nokia's operating margin 6% vs. 14% Sure its about the IP too, but if that was the case the potential of Nokias IP based purely on its existing FRAND rate for SEPs should have put Nokia over 10$ already.
N1 was announced in q4 and didn't even start sales til beginning of this month...
I see it as indication that Nokia is serious about monetizing it's IP, how else can you do it? Infringers are not going to come to you and hand over money if you just sit on your #$%$ as Nokia had been doing for the past decade up til very recently
that's the nature of the business and everyone understands this. yoy, AT sales was up 23%