Nokia Corporation (ADR) (NYSE:NOK) stock showed a hike of 3.08% on Friday 11 as the board of directors of the company announced the approval of equity program for 2016. Moreover, on the same day, the company announced its earnings for the fourth quarter of fiscal year 2015. The company reported a revenue of $4.08 billion which is higher than market analysts’ expectation of $3.18 billion. The reported earnings per share (EPS) came in at $0.17 whereas, market analysts were expecting an EPS of $0.10.
However, analysts at BMO capital are of the opinion that Nokia will not be able to report any significant increase in the revenue and EPS for the current quarter because of “a difficult wireless capex environment.” The research firm analysts are cautious about the performance of the industry as a whole and expects that the revenue will remain flat in the current year and the next year as well. BMO capital’s analysts have slashed their price target for Nokia stock to $8 from the previous price target of $10. However, the analysts reiterated their Outperform rating on Nokia’s stock. The research firm report covering Nokia’s stock came in just after the announcement of quarterly results by the company’s management.
Nokia stock has an average daily trading volume of 20.24 million with a 52 week range of $5.71-8.37. However, Nokia’s stock price is predicted to reach $7.81 in the coming 52 weeks as per Wall Street analysts. However, the hike in price is projected to be for short term only.
The hedge fund, Ariel Investments’ manager, John Rogers has increased his stake in Nokia by 8% amid the fourth quarter of fiscal year 2015. The increase in investment by the hedge firm was due to the acquisition deal between Nokia and Alcatel Lucent SA (ADR) (NYSE:ALU) in last April. The acquisition is expected to create a cost saving synergy of 900 million euros annually by the end of 2019.
The market analysts are mostly bullish about Nokia’s stock. The consensus price target that analysts suggest for Nokia stock is $9.6. The company’s stock price closed the day on Friday down by 2.28% at $6.