A few snippets from article:

 

At least one analyst thinks the punishment meted out to Nokia was unwarranted. In a research note sent late Thursday, Michael Genovese of MKM Partners described the negative reaction to Nokia's earnings update as "overdone," lauding growth in revenues and the performance of the company's mapping and licensing businesses during the first three months of the year.

 

"GMs [gross margins] missed … due to … lower software and systems integration sales, upfront costs for LTE builds in China and increasing competition in the market," added Genovese. "Mix and Chinese LTE profitability should improve later in the year. Additionally, the merger with ALU [Alcatel-Lucent] should help address some of the competitive environment-related issues over time."

 

Moreover, as Genovese has intimated, the margin impact of entry deals in China's 4G market may be a short-term one, as deployments gather pace. "The situation will ease in the second half of the year," said Suri.

 

 

Alcatel-Lucent's forthcoming earnings announcement -- scheduled for May 7 -- may be an awkward experience for Nokia. Should its rival and takeover target report a stronger set of results than either Nokia or Ericsson, there could be further rumblings of discontent from investors. Odey Asset Management, Alcatel-Lucent's second-biggest shareholder, was earlier this week reported to have described Nokia's €15.6 billion ($17.6 billion) all-stock offer as "unacceptable," arguing that it massively undervalues the French player. Because there is no cash component to the bid, the recent fall in Nokia's share price will have made it seem like an even worse deal from Odey's perspective.

 

 

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