Boston, MA 10/22/2013 (wallstreetpr) – Since Nokia Corporation (ADR) (NYSE:NOK) has not indicated any profit warning as it is required by Finnish law, it means that the company’s Q3.13 earnings won’t be any different from the guidance declared in Q2.13. Basically, in accordance with the Finnish law where Nokia is registered, a pre-announcement is required two weeks before the release of earnings in case of any appreciable difference from the previously laid out guidance.
But even without any significant news from Nokia, its shares have risen significantly in the previous week ending Friday, October 18. Coming from near the pits, the stock concluded last week at $7.13 per share.
As Nokia’s handset business goes to Microsoft, analysts have been weighing options for the company as regards its future. The company, perhaps more than its struggling peers, is better placed for huge gains if its mandarins carefully explore the company’s options and settles on the most profitable one. Analysts say.
Among the different options to take Nokia back into a growing corporation, analysts see potential in Intellectual Property (IP) business. It has worked for a number for companies in tepid times and it can work well for Nokia.
If Nokia needs to become itself again, the company could adopt a strategy in which is can collect 1% in royalty per handset. If this happens, then the Finnish company’s stock could well be worth between $16 and $24 per share by 2018.
Analysts see that if Nokia expands the number of companies paying it royalties and also increases its patent licensing base, it could report more than $4.52 billion in earnings before interest and taxes.
By venturing into aggressive Intellectual Property business, Nokia would not be walking an uncharted path. Qualcomm is a benchmark in this regard. It has minted huge millions of dollars through IP deals and doing the same could easily take Nokia where it seeks to be – top of its peers.
