Nokia (NYSE:NOK) shares are down nearly 12% in pre-market trading this morning. This slide in stock price is thought to be related to a company report which cut the firm’s projected financial outlook for the second quarter 2011. According to a source within the firm, the revisions are due to “multiple factors negatively impacting [business].”
Nokia (NYSE:NOK) spokespeople said that they expect sales for the second quarter to be, “substantially below its previously expected range of EUR 6.1 billion 9$8.78 billion to EUR 6.6 billion $9.50 billion),” due to lower than expected prices and sales volume for their mobile cellular devices. Margins on cell phone sales are also expected to fall well below earlier projected targets of 6-9%.
Perhaps a sign that the outlook is only set to get grimmer for the Finnish cell phone and communications service providers, the company stated that they would not be releasing revised financial projections for the year 2011. “Given the unexpected change in our outlook for the second quarter, Nokia (NYSE:NOK) believes it is no longer appropriate to provide annual targets for 2011.”
The bad news comes as something of a surprise for Nokia, especially on the heels of Jim Cramer’s bullish exhortation to investors last week to get in on the mobile phone industry. Maybe the “Mad Money” anchor didn’t have Nokia in mind. Check out these hot mobile phone companies that are making Nokia look especially sad this morning: Motorola (NYSE:MMI), Siemens (NYSE:SI), Apple (NASDAQ:AAPL), AT&T (NYSE:T), and Google (NASDAQ:GOOG).
It also can’t help that Nokia was exposed as one of Qaddaffi’s Secret Stock Investments.