Nokia Q1 2008 Earnings Report: Ouch
It’s tough to be #1. Nokia reported its earnings for the first quarter today, and the end result wasn’t pretty.
The big number that Nokia missed was 42 – percent, that is, or the analyst estimate for the profit increase from last year. In the first quarter, Nokia managed to hit only 25 percent.
The big number was 25 – percent that is, Nokia’s increase in profit from last year. Unfortunately, analysts were looking for something in the realm of 42 percent.
There were two other gotcha’s in the earnings report. The first was the USA, where sales fell 46 percent to a mere 2.5 million phones. And the second was the “downbeat” estimates given by Nokia for the rest of the year – according to the company, the decline of the dollar would cause the mobile phone market to lose value even with its expected 10% growth rate.
Global market share also dropped to 39% – which was 3% higher than a year ago, but still one percent less than the previous quarter’s results.
But it wasn’t all bad – Nokia did manage to sell 115 million cell phones, to the tune of $1.9 billion dollars in profit.
At the end of the day, shares of Nokia’s stock fell over 14% to finish at 28.95.
