Nokia Faces Near-Term Margin Concerns But LTE Buildouts Promise Better Future

Nokia expects the pressure on both the top-line and bottom-line to continue in the near term, as contract exits and divestments make for tough year-on-year comparisons while costs increase during the initial network layouts. However, we expect the profitability trend to improve as these projects enter the capacity phase and NSN leverages its recent contract wins at Sprint, China Mobile and China Telecom to bolster revenues towards the back half of the year.