Nokia "outperform," estimates reduced

07/25/05 - Piper Jaffray

LONDON, July 25 (newratings.com) - Analyst T Michael Walkley of Piper Jaffray reiterates his "outperform" rating on Nokia (NOA3), while reducing his estimates for the company.

In a research note published on July 22, the analyst mentions that the company reported its 2Q EPS, excluding a €37 million real-estate gain, short and revenues marginally ahead of the estimates. Although Nokia’s handset unit shipments were ahead of the estimates, the company’s mobile device revenues were in-line with the estimates due to a decline in ASPs, the analyst says. According to Piper Jaffray, the company is witnessing high competition and increased pricing pressure in the low-end market segment. The EPS estimates for 2005 and 2006 have been reduced from €0.84 to €0.74 and from €0.97 to €0.87, respectively.