Why Nokia Shares Crashed Hard Today
Shares of Nokia (NYSE: NOK) fell through the floor on Thursday following the company's release of reasonable third-quarter results with a side of deeply troubling forward-looking moves. The Finnish telecommunications veteran had taken a 22.5% haircut by 11:30 a.m. EDT.
Nokia saw its third-quarter sales rise 4% in local currencies, landing at $6.31 billion. The year-over-year comparison was almost exactly flat when factoring in the euro weakening 4.4% against the U.S. dollar. On the bottom line, adjusted earnings fell from $0.06 to $0.05 per American Depositary Receipt.
Wall Street analysts had been expecting earnings near $0.06 per ADR on revenues of roughly $6.32 billion. Nokia fell just short of both targets then slashed its full-year earnings outlook by 22%. Management's earnings guidance for fiscal year 2020 took an even deeper cut of 38%, stopping at approximately $0.27 per ADR.
Source Fool.com
