Printed from http://www.electronista.com

Nokia given Moody downgrade following Q1 results

updated 01:25 pm EDT, Fri April 24, 2009

Moody downgrades Nokia

Nokia stock should be avoided, Moody's Investors Service claims. Reuters reports that the firm has changed its rating of Nokia shares from stable to negative, mainly as a result of the cellphone maker's first-quarter financial results. Figures have "confirmed a double-digit rate of decline for the mobile phone market in units and a one third year over year revenue reduction for Nokia in this segment," notes Moody analyst Eric de Bodard.

The results also included Nokia's first-ever pretax loss, and a forecast of a 10 percent decline in cellphone market volumes during 2009. Gross margins were only 5.5 percent overall, well below Moody's prediction of 10 percent; the company did however maintain margins in terms of devices. More troubling may be a new admission from Nokia itself, which says it could be too early to tell if cellphone demand has reached the lowest point in the recession.

Moody warns that Nokia could be suffering not just from a recession economy, but also market saturation, in which most of the people in a position to buy the company's phones are already satisfied. Nokia may never be able to return to rapidly accelerating growth, Bodard suggests.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. rytc

    Senior User

    Joined: Jan 2001

    0

    Moody

    Moody, Standard and Poors and the rest of the rating agencies were shown to less than worthless in the financial crisis. DO we really care what they say anymore?

  1. rytc

    Senior User

    Joined: Jan 2001

    0

    Moody

    Moody, Standard and Poors and the rest of the rating agencies were shown to less than worthless in the financial crisis. DO we really care what they say anymore?

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Advertisement

Recent Reviews

Seagate Wireless

It seems like no matter how much internal storage is included today's mobile devices, we, as users, will always find a way to fill the ...

Lenovo Yoga Tablet 2 (Android, 10.1-inch)

Lenovo is building a bigger name for itself year after year, including its devices expanding beyond desktop computers. The company's l ...

Brother HL-L8250CDN Color Laser Printer

When it comes to selecting a printer, the process is not exactly something most people put a lot of thought into. Printers are often t ...

Advertisement

toggle

Most Commented

 
toggle

Popular News