08:27 ET TWP on Wireless : Thomas Weisel Partners is cutting numbers on Nokia (NOK) and Openwave (OPWV) based on channel checks which indicate slower GPRS launches; cuts NOK 2001 EPS to $0.64 from $0.70 and 2002 to $0.78 from $0.91, and OPWV 2001 to $0.39 from $0.41 and 2002 to $0.66 from $0.74.
07:14 ET Nokia (NOK) 17.17: Lehman expects company to report quarterly results on the lower-end of preannounced guidance, and to take cautious stance on 2nd-half outlook; estimates could come down further... Expects ERICY to report results on July 20 that are broadly in line with modest estimates.
briefing.com
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Herb Greenberg
nok
7/16/01 6:41 PM ET
Head's up on Nokia. We spend a lot of time bashing analysts, but we also use their info when it makes sense. This head's up from CSFB analyst Tim Long, regarding Nokia's Thursday earnings...on how the company will guide: "We see prospects for the company to report no revenue growth in the second half, placing pressure on margins." hg
Street.com
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Nokia seen tight-lipped on outlook after grim Q2
By Paul de Bendern
HELSINKI, July 17 (Reuters) - Nokia , the world's largest mobile phone maker, is expected to trim its near-term outlook when it posts second-quarter results on Thursday, but given the industry's low visibility may not give precise forecasts for this year or next, analysts said.
Like other global technology companies, Nokia has had to retract earlier upbeat forecasts as the U.S.-led economic slowdown has hit harder and faster than expected, and it is now unlikely to risk being too specific on Thursday.
``It's unclear how precise Nokia's guidance will be for the rest of the year. Although the fourth quarter is seen stronger, how strong is the question,'' said Morgan Stanley Dean Witter analyst Angela Dean, who has a neutral rating on Nokia.
``I don't think we'll get to know much about the big questions for next year,'' she added.
The market is looking to Nokia for confirmation of signals given last week by its nearest competitor Motorola (NYSE:MOT - news), which said the slowdown at its key handset and semiconductor units were nearing an end.
But this picture was clouded on Tuesday when Dutch consumer electronics group Philips reported a big quarterly loss and warned of a spreading slowdown in chips, telecom and PC markets.
Nokia is expected to post a 24-percent fall in second-quarter pre-tax profits to 1.09 billion euros ($927.7 million) compared to the same quarter last year, according to a Reuters poll of 17 analysts.
Sales are seen at 7.59 billion euros and earnings per share (EPS) at 0.16 euros -- in line with a profit and sales warning the company issued on June 12.
But given the warning, investors are unlikely to pay much attention to the actual April-June result as it has largely been discounted in Nokia's share price, which is now at 23-month lows.
Focus will also be on rival Ericsson which on Friday is expected to report a 4.4 billion crown ($407.4 million) pre-tax loss in the second quarter plus a 15 billion crown restructuring charge.
LOW VISIBILITY REMAINS
Nokia could still surprise positively with an upbeat outlook, but given the low visibility of the sector due to the effects of an economic slowdown and reduced consumer spending it is unlikely to say too much about the second-half of this year.
``Given limited visibility and the need to rebuild investor confidence, we expect that management will ensure that Q3 2001 EPS guidance is conservative in these uncertain times,'' Deutsche Bank said in a research note. ``We expect a recovery in Q4 2001.''
The market will also be looking to see whether Nokia reiterates its April forecast of sales growth of 20 percent in 2001 and 25-35 percent in 2002, but the poor visibility has led some analysts to speculate Nokia will not mention the 2002 outlook on Thursday.
While several analysts see the fourth quarter as the start of the rebound they do not expect to see any general turnaround until the first half of next year when operators boost network upgrades and it is hoped that consumer spending picks up on the back of new and mobile Internet phones and services.
OPERATORS KEY TO NOKIA REBOUND
Like its nearest rivals Motorola, Siemens and Ericsson, Nokia has been hurt by operators holding back on new orders for wireless network equipment or mobile phones.
U.S. carriers are not spending because of the weak economy, while European carriers are in even greater financial difficulties because they are also burdened by $120 billion in debt from the purchase of third-generation (3G) wireless network licences.
Analysts hope Nokia -- a challenger to Ericsson's position as the world's largest mobile network manufacturer -- will shed some light as to when carriers expect to start upgrading their current second-generation networks or start buying 3G equipment.
The slowdown in network spending has forced Nokia to cut its sales target for the division this year to growth in line with that of the market, and it remains to be seen whether it will still achieve operating margins in the high teens for 2001.
But Nokia's principal business remains handsets, and analysts will want to know when the firm thinks the market will pick up again and whether it will still achieve handset operating margins in the high teens this year.
Nokia said last month its handset unit would grow faster than the market, which was seen showing only very modest growth this year compared with 2000 when about 405 million phones were sold.
Nokia hopes the launch in Europe from the third quarter of much-delayed mobile Internet phones, using so-called GPRS technology, will kick-start demand, but some analysts are more doubtful, saying they expect GPRS to only take off next year.
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