Nokia Corporation (NYSE:NOK) [Detail Analytic Report] is expected to post 5% decline in its Q1 net sales due to diminishing demand for network gear in China, and investors will be looking for the firm to clarify its outlook for the remainder of the year. Last month, Nokia revealed that it intends to slash thousands of jobs globally, including 1,400 in Germany and 1,300 in its native Finland, as part of a cost-reduction programme. Nonetheless, its operating profit from its core telecoms network equipment business is anticipated to have risen sharply in the Q1 following its merger with Alcatel-Lucent.
Nokia plans to announce its first quarter financial results on Tuesday and it will be its first for the combined firm. The networks business, which accounts for virtually all of the firm’s sales, is anticipated to report non-IFRS earnings before interest and taxes of $308 million in the period, increased 29 percent from a year ago. Total group operating profit in the period is projected to be $398 million, compared with 276 million euros a year earlier.
Nokia’s acquisition of Alcatel was aimed at helping the firm compete with Ericsson and China’s Huawei in telecom networks gear, where limited growth and tough rivalry are pressuring prices. Ericsson’s Q1 operating profit lagged market anticipations as underlying sales fell for a sixth straight quarter. Nokia sold its once-dominant mobile handset phone business to Microsoft a couple of year ago, leaving it with the networks business and a large technology patent portfolio.
ShoreTel, Inc. (NASDAQ:SHOR) [Detail Analytic Report] disclosed that board of directors of the firm has authorized a share buyback program for more than $20 million of the firm’s common stock. Don Joos, president and CEO of ShoreTel commented that as they’ve executed their strategic transformation to become a cloud-based firm, they’ve increased their cash balances and extended their financial flexibility. This allows them to invest in their organic growth catalysts and technology innovation.
Joos added at the same time, they continue to evaluate ways to allocate capital efficiently and recognize a unique opportunity under this share buyback program. ShoreTel will buy back shares at times and prices considered appropriate by the firm. The firm expects the share purchase will occur during the coming 12 months, although the exact timing of buybacks and number of shares of common stock to be bought will depend upon market conditions and other factors.
ShoreTel expects to fund the program using a combination of the firm’s cash on hand and cash generated from operations. The program may be extended, suspended or discontinued at any time without prior notice.
Gogo Inc. (NASDAQ:GOGO) [Detail Analytic Report] declared its first quarter loss of $24.1 million. On a per-share basis, the Chicago-located firm reported that it had a loss of 31 cents. The results topped Wall Street estimates. The average estimate of experts polled by Zacks Investment Research was for a loss of 39 cents a share. The in-flight Internet provider announced revenue of $141.7 million in the quarter, also topped Street forecasts. According to Zacks, analysts have expected $137.3 million.
Shares of Gogo have slumped 42 percent since the starting of the year. The stock has tumbled 51 percent in the previous twelve 12 months. Michael Small, President and Chief Executive of Gogo stated during earning call that they are excited to announce 2Ku awards by Delta Air Lines and International Airlines Group, including British Airways, Iberia, and Aer Lingus, bringing their total 2Ku awards to over 1,000.
Small added they also are excited by the commercial launch of 2Ku on AeroMexico. Based on airline demand, they are accelerating 2Ku deployment and expect to exceed their 2016 target of 75 installs. Norman Smagley, Executive Vice President and CFO of Gogo commented that their strong financial and operating performance coupled with aircraft awards on three continents give them great momentum to continue to drive growth in revenue and profitability.