Nokia: Oppenheimer expects Nokia to report a strong 4Q14, yet potentially issue disappointing 1Q15 guidance
Oppenheimer expects Nokia to report a strong 4Q14, yet potentially issue disappointing 1Q15 guidance. Their checks suggest that many of the positive 3Q14 trends have carried through into 4Q14, including strong wireless carrier spending in China and the US for Networks, as well as solid seasonal auto sales driving HERE. Their 1Q15 concern is with wireless carrier spending, which they believe could see a slower than usual season start in 2015. The Networks moderation could make for top-line and gross margin downside, while the potential catalyst from Samsung (SSNLF) arbitration results may not come until later in 2015. Put together they're wary of near-term downside to the shares, although their long-term thesis remains unchanged.