Jose_R.A.M
08-06-2005, 01:48 PM
18-07-2005
Nokia Market Share Seen Rising In Second Quarter
LONDON (Dow Jones) -- Finnish mobile-phone maker Nokia Corp. is expected to confirm it has gained market share and grown volume in the second quarter when it posts earnings on Thursday, but the market may not be satisfied unless the results are ahead of the company's guidance.
Encouraging results from Sony Ericsson Mobile Communications, the 50-50 joint venture of Sony Corp. (SNE) and Ericsson AB (ERICY), and Samsung last week have boosted investors' expectation about Nokia's (NOK) results.
"Results from Sony Ericsson and Samsung confirm our view that market volumes in the second quarter have been strong, driven by emerging market subscriber strength. This should benefit both Nokia and Motorola, Inc. (MOT)," analysts for Deutsche Bank told clients last week.
The broker expects Nokia mobile phone volumes to rise 8% and the average selling price to be flat at 110 euros compared to the first quarter.
Evidence of strong second-quarter market volumes and continued strength in the third quarter, was also contained in the pre- announcement from RF Micro Devices, Inc. (RFMD), whose major customers include Motorola, Nokia and Samsung , Jefferies International noted.
RF Micro earlier this month raised its revenue target, citing strong wireless business.
As a result, investors expect strong Nokia earnings this quarter.
"The recent rise in expectations suggests that Nokia will have to deliver earnings per share of 21 euro cents for the market to welcome the results," Enskilda Securities told clients.
Nokia is seen posting earnings of 0.19 euros a share, up from 0.15 euros a share in the year-earlier quarter, on sales of 8.03 billion euros, according to the average forecast of analysts polled by Thomson First Call.
Nokia's own guidance is for earnings in the range of 0.16 euros to 0.18 euros a share on sales between 7.9 billion and 8.2 billion euros.
SG Securities warned that the results might not be much better than consensus.
"The key to market reaction will be whether Nokia hits the market's EPS expectations. As the company has not pre-announced, we assume that the results are not hugely better than consensus. In line guidance would disappoint the market," the French broker said.
SG Securities said it sees Nokia achieving market share of 32.5%, compared to 31.6% in the first quarter as it has picked up share from Siemens AG (SI) in Europe and become less involved in North America, where Motorola has been exceedingly strong.
On the negative side, SG noted that the results from the networks division was disappointing in the first quarter and warned there could be further weakness.
Deutsche Bank was also guarded on outlook. "While we expect second-quarter results to be strong and above company guidance, we highlight the possibility of cautious third-quarter guidance from management."
link cellular news (http://www.cellular-news.com/story/13476.php)
Nokia Market Share Seen Rising In Second Quarter
LONDON (Dow Jones) -- Finnish mobile-phone maker Nokia Corp. is expected to confirm it has gained market share and grown volume in the second quarter when it posts earnings on Thursday, but the market may not be satisfied unless the results are ahead of the company's guidance.
Encouraging results from Sony Ericsson Mobile Communications, the 50-50 joint venture of Sony Corp. (SNE) and Ericsson AB (ERICY), and Samsung last week have boosted investors' expectation about Nokia's (NOK) results.
"Results from Sony Ericsson and Samsung confirm our view that market volumes in the second quarter have been strong, driven by emerging market subscriber strength. This should benefit both Nokia and Motorola, Inc. (MOT)," analysts for Deutsche Bank told clients last week.
The broker expects Nokia mobile phone volumes to rise 8% and the average selling price to be flat at 110 euros compared to the first quarter.
Evidence of strong second-quarter market volumes and continued strength in the third quarter, was also contained in the pre- announcement from RF Micro Devices, Inc. (RFMD), whose major customers include Motorola, Nokia and Samsung , Jefferies International noted.
RF Micro earlier this month raised its revenue target, citing strong wireless business.
As a result, investors expect strong Nokia earnings this quarter.
"The recent rise in expectations suggests that Nokia will have to deliver earnings per share of 21 euro cents for the market to welcome the results," Enskilda Securities told clients.
Nokia is seen posting earnings of 0.19 euros a share, up from 0.15 euros a share in the year-earlier quarter, on sales of 8.03 billion euros, according to the average forecast of analysts polled by Thomson First Call.
Nokia's own guidance is for earnings in the range of 0.16 euros to 0.18 euros a share on sales between 7.9 billion and 8.2 billion euros.
SG Securities warned that the results might not be much better than consensus.
"The key to market reaction will be whether Nokia hits the market's EPS expectations. As the company has not pre-announced, we assume that the results are not hugely better than consensus. In line guidance would disappoint the market," the French broker said.
SG Securities said it sees Nokia achieving market share of 32.5%, compared to 31.6% in the first quarter as it has picked up share from Siemens AG (SI) in Europe and become less involved in North America, where Motorola has been exceedingly strong.
On the negative side, SG noted that the results from the networks division was disappointing in the first quarter and warned there could be further weakness.
Deutsche Bank was also guarded on outlook. "While we expect second-quarter results to be strong and above company guidance, we highlight the possibility of cautious third-quarter guidance from management."
link cellular news (http://www.cellular-news.com/story/13476.php)