Nokia Corporation (ADR) (NYSE:NOK) 1Q13 Showed Good Progress for Lumias, Weakness in Mobile Phones
For the first fiscal quarter, Nokia reported loss of EUR 272 million ($357 million), compared to loss of EUR 928 million recorded in the same quarter a year earlier. This decline in loss incurred is the result of decline in operating cost.
Is NOK a Strong Buying Opportunity After The Recent Slump? Find Out Here
Nokia posted loss per shares of EUR 0.02 for the first quarter, better than street consensus of EUR 0.04. For the same quarter The Devices & Services margin of 0.1 percent has been recorded, above the street consensus of negative 2.1 percent margin and so was the 7 percent NSN margin, below the street consensus of 3.9 percent.
In first fiscal quarter, Nokia shipped 5.6 million Lumia devices, in line with the expectations. However, Mobile phones volumes of 55.8 million fell short of the 65 million expectations.
Revenue for the quarter declined 25 percent year over year to EUR 5.8 billion.
Nokia guided for a negative Devices & Services margin of 2 percent and positive NSN margin of 5 percent in second quarter. This was weaker than the negative 0.4 percent Devices & Services and positive 6 percent NSN margins expected by consensus. Nokia said Lumia volumes would grow more in second quarter than first quarter (i.e. volumes of more than 7.1 million versus the 7.2 million consensus estimate).
Shares of Nokia went down by 10.61 percent and are currently trading at $3.20.
Federal National Mortgage Association (OTC: FNMA) Unsustainable Economic Growth in 1Q, Above Normal
As per the data collected by Fannie Mae’s Economic & Strategic Research Group, first quarter economic growth has accelerated to an above normal—but likely unsustainable—pace of 3.2 percent. This is a one-time growth in the first quarter due to a significant build-up in inventory and second quarter is expected to come with the more balanced level.
Is FNMA Ready to Hit $2? Find Out Here
Meanwhile, several other key indicators late in the first quarter, including a downbeat March jobs report, were soft, presaging a more moderate pace for the rest of the year.
For 2013, FNMA expects growth of approximately 2.3 percent, above the growth of 1.7 percent and 2.0 percent in 2012 and 2011 respectively.
On Wednesday, shares of FNMA went down by 2.35 percent and closed at $0.791 with volume of 13.04 million shares traded, below the daily average volume of 37.62 million shares.
