Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) shares tanked as much 9.87% on January 23 after the Finnish company released its fourth quarter results. The current quarter margins outlook for its NSN division are disappointing. But the new Nokia has improved transparency as the company revealed more about its cash flow outlook, Advanced Technologies and tax expenses. The deal with Microsoft Corporation (NASDAQ:MSFT) is expected to close in Q1.

Nokia’s networking unit to grow this year

During the fourth quarter, NSN revenues declined 22% YoY. Sales in North America plunged 38% as NSN completed deliveries to T-Mobile US Inc (NYSE:TMUS). But SEB Equity Research analyst Artem Beletski said in a research note that the revenues should rise again in 2014 as it starts fulfilling the orders from Sprint Corporation (NYSE:S). Meanwhile, NSN sales to Greater China inched up 2%.

Nokia NSN-1

In Q4, NSN earned a profit of 348 million euros, which was 8% below consensus. Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) isn’t optimistic about NSN revenues in the first half of this year. It also forecasts the current quarter margins from its networking and equipment division to come at 5%, well below the consensus estimate of 6.8%. But Beletski says growth investments should stabilize NSN revenues in H2. The research firm says that the division’s profit margin should also rise to the higher end of Nokia’s 5-10% estimate in the latter half of this year.

Nokia NSN-2

Advanced Technologies’ revenue fell 20% to 121 million euros, missing the Wall Street consensus by 9%. Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) said that some of its customers had lower business activity, affecting its IPR revenues. However, Advanced Technologies division had a 68% margin in Q4, 2013, helped by low litigation-related expenses and R&D costs.

Advanced technologies

Revenues at HERE maps division also fell 9% in Q4 to 254 million euros. That’s because of falling internal revenues. External sales at HERE jumped 10%. This year, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) plans to invest in long-term growth opportunities, which may affect HERE division’s profitability negatively.

Nokia HERE

What’s going to drive Nokia stock up?

SEB Equity Research says that Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s next positive stock triggers would be strategy communication and dividends. The company is expected to communicate its new strategy by the end of Q1. Beletski expects Nokia to announce 0.2 euro per share in base dividend and 0.5-1 euro a share of extra dividend. Moreover, the research firm says that more straightforward business structure of Nokia and improved transparency may trigger M&A activity in the new company.

SEB Equity research has reduced its price target on the stock from 6.4 euros to 6 euros, but maintains its Buy rating. Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) shares jumped 2.02% in pre-market trading Monday to $7.