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Nokia Corp. (NOK - Analyst Report) is on a buying spree and the recent acquisition of 3D geolocation technology from an Israeli-based security and surveillance company NICE Systems adds to its asset base.

The 3D geolocation solutions will help Nokia enhance mobile network performance and traffic trends using three dimensional modeling. Moreover, higher usage of Internet will enable network operators to accelerate the rollout of small cell sites across different locations. Hence, the 3D geolocation technology will allow these operators to collect vital data for network planning and managing traffic movements.

 Included in the series of takeovers is Nokia’s recent purchase of SAC Wireless, a U.S. based network installation services provider.  In June this year, Nokia acquired Australian-based wireless company, Mesaplexx which will help the company resize base stations and small cells sites.

In the same month, Nokia took over Seattle-based Medio Systems to boost it’s Here mapping solutions. Recently, Nokia sold its Device business to Microsoft Corp. (MSFT - Analyst Report) for $7.5 billion. The proceeds from these divestments will be used to execute future acquisitions, in our view.

In the recently concluded first quarter of 2014, Nokia’s quarterly net revenue stood at approximately $3.7 billion, reflecting a stiff year-over-year fall of 15%. The figure also lagged the Zacks Consensus estimate. Hence, we believe that these acquisitions coupled with continuous contract wins will certainly bolster the company’s top line in the forthcoming quarters.

Nokia currently has a Zacks Rank #3 (Hold). Other stocks in the related sector worth considering are InterDigital, Inc. (IDCC - Snapshot Report) and Comtech Telecommunications Corp. (CMTL - Snapshot Report). Both the stocks sport a Zacks Rank #1 (Strong Buy).

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