Earnings Review and Free Research Report: Nokia Reported Improved Q2 Operating Margins and Diluted EPS
Research Desk Line-up: Motorola Solutions Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 10, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Nokia Corp. (NYSE: NOK), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NOK, following the Company's announcement of its second quarter fiscal 2017 (Q2 FY17) results on July 27, 2017. The Espoo, Finland-based Company's non-IFRS operating margin improved 430 basis points, while its non-IFRS diluted EPS surged 167% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Communication Equipment industry. Pro-TD has currently selected Motorola Solutions, Inc. (NYSE: MSI) for due-diligence and potential coverage as the Company reported on August 03, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Motorola Solutions when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NOK; also brushing on MSI. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=NOK
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Earnings Reviewed
In Q2 FY17, Nokia reported net sales of €5.62 billion, which came in 1% above the €5.58 billion reported in the year-ago same period. Excluding foreign translation loss, the Company's net sales would have been flat on a year-over-year basis for Q2 FY17. Furthermore, the Company's non-IFRS net sales were down by 1% to €5.63 billion y-o-y.
The telecommunication equipment maker's loss from continuing operations narrowed to €433 million, or €0.07 loss per diluted share, in Q2 FY17, from €726 million, or €0.12 loss per diluted share, in Q2 FY16. Meanwhile, the Company's non-IFRS profit surged to €441 million, or €0.08 per diluted share, during Q2 FY17 from €171 million, or €0.03 per diluted share, in the previous year's comparable quarter.
Operational Metrics
During Q2 FY17, Nokia's non-IFRS gross profit stood at €2.35 billion, rising 7% from €2.21 billion in the prior year's comparable quarter. The Company's non-IFRS gross margin for the reported quarter was 41.7%, up from 38.9% in Q2 FY16. Non-IFRS operating profit also increased to €574 million during the reported quarter from €332 million in the year ago corresponding quarter. Furthermore, non-IFRS operating margin also improved to 10.2% in Q2 FY17 from 5.9% in Q2 FY16.
Segment Results
During Q2 FY17, Nokia's Networks business net sales fell 5% to €4.97 billion from €5.22 billion in Q2 FY16. The segment reported a gross profit of €1.95 billion, or 39.1% of the segment's net sales, in Q2 FY17 compared to €1.97 billion, or 37.6% of the segment's net sales in the last year's same quarter. Additionally, the segment's operating profit came in at €406 million, or 8.2% of the segment's net sales, in Q2 FY17, up from €313 million, or 6.0% of the segment's net sales, in the year ago comparable quarter.
Net sales at Nokia Technologies surged 90% from €194 million in Q2 FY16 to €369 million in Q2 FY17. The segment's gross profit for the reported quarter came in at €352 million, or 95.4% of the segment's net sales, versus €187 million, or 96.4% of the segment's net sales in Q2 FY16. Furthermore, the segment's operating profit increased to €230 million, or 62.3% of the segment's net sales, in Q2 FY17 compared to €89 million, or 45.9% of the segment's net sales, in the last year's comparable quarter.
Group Common and Other's net sales increased 14% to €307 million during Q2 FY17 from €270 million in Q2 FY16. The segment's gross profit was €54 million, or 17.6% of the segment's net sales, for the reported quarter compared to €52 million, or 19.3% of the segment's net sales in the prior year's same quarter. However, the segment reported operating loss of €62 million compared to operating loss of €70 million posted in the year ago same quarter.
Balance Sheet
In the reported quarter, Nokia's operating activities provided €1.04 billion of cash to the business compared to cash used in operating activities of €616 million in the year ago corresponding quarter. As on June 30, 2017, the Company had cash and cash equivalents balance of €6.65 billion compared to €8.45 billion as on June 30, 2016. Furthermore, the Company's long-term interest-bearing liabilities balance stood at €3.58 billion as on June 30, 2017, compared to €3.59 billion as on June 30, 2016.
Stock Performance
Nokia's share price finished yesterday's trading session at $6.36, dropping 1.24%. A total volume of 7.39 million shares have exchanged hands. The Company's stock price soared 3.58% in the last three months, 30.33% in the past six months, and 12.57% in the previous twelve months. Additionally, the stock skyrocketed 32.22% since the start of the year. Shares of the Company have a dividend yield of 2.83% and currently have a market cap of $37.22 billion.
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