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Will Big Technology Perform or Crash on Earnings?

NOK ChartNOK data by YCharts

Nokia (ADR) (NOK)

Who They Are: Nokia trades an average of 36.7 million shares per day with a market cap of $7.1 billion.
52-Week High: $7.38
52-Week Low: $1.77
Book Value: $3.56

Nokia is expected to report weak second-quarter earnings before the market opens on July 19. Wall Street is expecting a loss of 11 cents a share, a decline of 20 cents from 9 cents during the same period last year.

Analyst opinion is mixed. Right now, NOK has 2 buy recommendation out of 24 analysts covering the company, 16 holds, and 6 sells. Shareholders have not been rewarded for their patience; shares have fallen 66% in the last year, and the average analyst target price for NOK is $2.82.

The trailing 12-month P/E is 19 and the mean fiscal year estimate P/E is, based on a loss of 30 cents per share this year. Investors are receiving 18 cents in dividends for a yield of 9.31%. If you own Nokia for the dividend, run, don't walk away. The dividend was cut in January and another cut is all but certain.

In the last month, the stock has fallen 31.9%. In a nutshell, Nokia is circling the drain. The company is on life support, and brain scans indicate very little activity. Microsoft can pull the plug on them at any point and, with other smartphone makers stepping up to produce phones, Microsoft just might pull the plug soon.

Revenue year-over-year increased to $58.09 billion last fiscal year, compared to $57.62 billion in the previous year. The bottom line has rising earnings year-over-year of $1.78 billion last fiscal year, compared to $362.70 million in the previous year.

At the time of publication, the author held no positions in any stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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