NEW YORK (TheStreet) -- Nokia(NOK) - Get Report stock is gaining 1.54% to $6.61 in early afternoon trading on Monday, after the company received the last regulatory approval in the U.S. needed to complete its acquisition of Alcatel-Lucent (ALU) .
Alcatel-Lucent stock is rising 1.59% to $3.53 in late morning trading on Monday.
The Committee on Foreign Investments gave Nokia clearance to acquire Alcatel-Lucent following approval by the Department of Justice.
The acquisition, which was announced in April, values Alcatel-Lucent at 15.6 billion euros by offering 0.55 new Nokia share per each Alcatel-Lucent share.
The transaction is pending approvals from other antitrust authorities in other regions and approval from Nokia shareholders.
The deal is expected to close in the first half of 2016.
Finland-based Nokia offers infrastructure software, hardware and services through its networks and mobile broadband, while France-based Alcatel-Lucent is a provider of Internet protocol, cloud networking and ultra-broadband access.
Separately, TheStreet Ratings team rates NOKIA CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NOKIA CORP (NOK) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, NOK has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Communications Equipment industry and the overall market, NOKIA CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.4%. Since the same quarter one year prior, revenues slightly dropped by 8.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 88.5% when compared to the same quarter one year ago, falling from $3,439.64 million to $394.35 million.
- Net operating cash flow has significantly decreased to -$295.99 million or 127.33% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: NOK Ratings Report