Boston, MA 11/06/2013 (wallstreetpr) – Nokia Corporation (ADR) (NYSE:NOK) is going double and that could happen sooner than later. Nokia’s resurgence is almost sure, yet the ground to be covered is still large. However, investors can now have enough sleep that the giant is back on its feet and what remains is to capitalize of the opportunities so as to earn higher dollars.
Before Microsoft stepped in to acquire the company’s mobile unit, it was like Nokia going to the dogs. It made huge declines in share price than nobody wanted to look at. From $15.62 in March 2010 to $1.71 in July 2012, the bleeding was breathtaking, leading to a whopping 89% loss in market value. As if that was not enough, Nokia witnessed its net sales dwindle from $38.7 billion in 2011 to $30.2 billion in 2012. This was largely due to highly underperforming products and declining market share. Among the underperforming segments was the device unit whose net sales declined from $23.9 billion to $15.7 billion in 12 months from 2011 to 2012. During this trying moment, Nokia’s gross profit dipped from $11.4 billion to $8.4 billion. And on top of this, earnings per share collapsed as losses doubled from $1.2 billion in 2011 to $3.1 billion in 2012. But all that is now water under the bridge. Nokia is now beginning to become Nokia again, albeit, gradually.
By selling of its loss making device unit to Microsoft at around $7.2 billion, the company has started defining its future successfully. Since the close of the deal, Nokia’s stock price has not only been able to climb, but also holds up around $7.75 per share which is a stark contrast from what it was in July 2012. Although Nokia continues to face revenue challenges as evidenced by its October Q3, it has enough strength to double in the next quarters.
