Nokia Corporation (ADR) (NYSE:NOK) shares up by 3.82%
The shares of Nokia Corporation (ADR) (NYSE:NOK) augmented by 3.82% to close at $4.08 at trading session of Friday, July 5. The stock opened at $ 4.03 and achieved an intraday high of $4.09. Almost 32.72 million shares were traded on Friday’s trading session; which is higher than the average volume of the past 90 days trading sessions that stands at 29.36 million.
The company lately proclaimed the coming up acquisition of fifty percent stake of the joint venture, Nokia Siemens Networks. The deal is expected to conclude in the current quarter. This pending buy has been stated as one of the major reasons by Standard & Poor’s for long-term credit rating of Nokia from BB- to B+. Further, as per S&P, Nokia Corporation (ADR) (NYSE:NOK)’s downbeat free operating cash flow and the around $2.23B deal raises anxiety about ability of Nokia Corporation (ADR) (NYSE:NOK) to be able to create positive free operating cash flow specifically the Devices & Services categorization, demonstrate low revenue and margin visibility and its small smartphones’ market share.
The segment of Nokia Siemens Networks is comparatively more profitable as against the business of Devices and Services. It has 7% adjusted operating margin. To the contrary, the segment of Devices and Services scarcely demonstrated a break even in adjusted operating margin of only 0.1% in the previous quarter. Nokia Corporation (ADR) (NYSE:NOK) has targeted the segment that is less profitable and the lower-end in the market. This has been conducted through Asha lineup that may impose additional margin pressure.
Nokia Corporation (ADR) (NYSE:NOK) is concurrently launching novel devices in a very fast pace. This is being done by the company to provide a Windows Phone in almost all plausible prices and interest point. The event, Nokia Zoom, is all set to take place on July 11, where is is anticipated, the introduction of much awaited and much heard, Lumia EOS will take place.