Nokia Slumps as Supplier’s Sales Fall

Nokia (NYSE:NOK) shares slipped hard this morning after a supplier warned of falling sales, Bloomberg reported. Danske Bank downgraded the mobile phone giant’s stock to “sell” following a drop in shipments of older Symbian phones, according to the report.

STMicroelectronics NV (NYSE:STM), Europe’s largest manufacturer of semiconductors and a supplier to Nokia, announced yesterday that it expects first-quarter revenue to decline as much as 10 percent from the previous three months due to weak sales at the ST-Ericsson AB joint venture.

In a fourth-quarter report yesterday, ST-Ericsson (NASDAQ:ERIC) said it expects sales and operating results to “continue to be challenging in coming quarters” thanks to a short-term decline in new product sales with one of its largest customers. ST-Ericsson did not disclose the name of the customer.

Here’s how these stocks are reacting to the news:

Nokia Corporation (NYSE:NOK): NOK shares recently traded at $5.27, down $0.46, or 8.03%. They have traded in a 52-week range of $4.46 to $11.75. Volume today was 7,792,943 shares versus a 3-month average volume of 29,886,600 shares. The company’s trailing P/E is 22.60, while trailing earnings are $0.23 per share.

STMicroelectronics NV (NYSE:STM): STM shares recently traded at $6.92, down $0.3, or 4.16%. They have traded in a 52-week range of $5.34 to $13.53. Volume today was 570,635 shares versus a 3-month average volume of 1,853,670 shares. The company’s trailing P/E is 7.07, while trailing earnings are $0.98 per share.

LM Ericsson Telephone Co. (NASDAQ:ERIC): ERIC shares recently traded at $9.92, down $0.22, or 2.17%. They have traded in a 52-week range of $8.83 to $15.44. Volume today was 369,868 shares versus a 3-month average volume of 4,259,250 shares. The company’s trailing P/E is 14.15, while trailing earnings are $0.70 per share.

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