Helsinki: Nokia posted a deep second quarter net loss Thursday of 1.41 billion Euros ($1.74 billion), four times more than during the same period a year earlier and more than double the loss expected by analysts.
The Finnish company, which is struggling with an extensive restructuring, acknowledged that the three-month period, which also saw sales plunge by 19 percent year-on-year, had been “a difficult quarter”.
The current Zacks Consensus Estimate projects a loss of 11 cents per share for the second quarter, representing a decline of 218.89% from the year-ago quarter.
Compared to the first quarter recap, which was done by Nokia on April 19, 2012, It was reported that the quarterly net loss was approximately $1,200 million compared with a net income of $300 million. However, adjusted EPS (excluding special items) of a loss of 11 cents per share in the reported quarter was significantly higher than the Zacks Consensus Estimate of a loss of 6 cents.
For fiscal 2012, in the last 30 days, out of the 24 analysts covering the stock, 7 analysts decreased the estimate while 2 analysts increased it. For fiscal 2013, out of the 24 analysts covering the stock, 7 analysts reduced the estimate, while none moved the estimate upward.
The analysts remained bearish on Nokia Corp. as they believe that fiscal 2013 will be another tough year for the company as it battles market share losses coupled with the looming fear of Lumia’s failure. They believe that the company’s decision to slash the prices of its flagship Lumia 900 might impact its bottom line.