Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) is scheduled to release its financial results for the third quarter on Thursday, October 23 around 8:00 in the morning in Finland.

Nokia Corporation (NOK) Q3 Earnings Preview

Analysts at J.P Morgan Europe Equity Research expected Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) to report strong results for the quarter driven by its networks business unit.

Earnings estimate for Nokia

For the third quarter, J.P. Morgan analysts Sandeep Deshpande and Chetan Udeshi estimated that Nokia Corporation (NYSE:NOK) (BIT:NOK1V) would be able to deliver €3.03 billion in revenue (+3% QoQ and YoY) for the third quarter.

The analysts expected Nokia to deliver €1.275 billion in gross profit, €325.4 million in EBIT and €0.05 in diluted earnings per share. Its EBIT margin is expected to be around 10.7%.

In a note to investors, Deshpande and Udeshi emphasized that their revenue estimate for Nokia Corporation (NYSE:NOK) (BIT:NOK1V) was slightly higher than the €3.01 billion consensus estimate. Their EBIT estimate was ~9% lower than the €357 million consensus estimate due to lower EBIT and margin in networks and technologies segments as higher than consensus EBIT loss on common corporate expenses.

Nokia is well-positioned to meet or beat consensus estimates

According to the analysts Nokia Corporation (NYSE:NOK) (BIT:NOK1V) is well positioned to meet or beat the consensus expectations due the easy comps in networks business unit for the third quarter along with its newly announced agreements and the acceleration of ongoing business with China Mobile Ltd (ADR) (NYSE:CHL).

Nokia has least risk of European telecom vendors

Deshpande and Udeshi emphasized that the good exposure of the networks business of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) in the United States means it has least risk of European equipment vendors in the third quarter.

The analyst ecpected Nokia’s networks business to deliver €2.65 billion in revenue compared with the €2.64 billion consensus estimate.

On the other hand, Deshpande and Udeshi emphasized that HERE, the autonomous mapping service of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) is still under-loved by investors. According to them, the company should provide more details about the business to receive full market valuation.

The analysts expected Nokia’s HERE business to deliver €227 million revenue compared with the €223 million consensus estimate.

J.P Morgan Europe Equity Research has an Overweight rating for Nokia Corporation (NYSE:NOK) (BIT:NOK1V) with a price target of €8.00 per share.