The Finnish manufacturer of telecommunications equipment Nokia is preparing for the quarterly report, and experts expect that the company will report a slight decrease in operating profit amid a reduction in investment by telecom operators and a patent dispute with Apple.
Nokia, as well as its competitors - the Swedish company Ericsson and the Chinese Huawei - suffer because the demand for equipment for 4G-networks reached its peak, and the transition to the next-generation 5G standard has not yet begun. Nevertheless, experts note that, compared to Ericsson, the Finnish company is in better shape, thanks to successful consolidation and a strategy to reduce costs.
In particular, OP Equities analyst Hannu Rauhala recommends Nokia shares to buy and believes that along with the quarterly results the company will present an optimistic forecast.
"Nokia has received several orders this year and is actively working in the US, although Europe is still in doubt," the specialist said..
According to a Reuters poll, analysts on average predict that in the first quarter of 2017 Nokia's profit before taxes and interest (EBIT) will be 334 million euros. This is 3% less than a year ago. However, it is expected that in the technological unit of Nokia will be registered a decline of 21% due to a lawsuit with Apple, which for several years refuses to pay royalties.