Earnings season synthesis
Earnings parade continues.
The second wave of vendor results is quite different from the first one. Heavyweights are not performing very well, except Nokia, ZTE and Harris. All three report significant increase in sales and in earnings. Others (Siemens, Alcatel, NEC, Fujitsu) reported low (or no) sales increase and various difficulties in earnings. Small companies are not performing well also.
Overall, mixed results highlight to remain cautious for the future, as announced last week by Ericsson CEO.
On the operator front, the situation is quite similar to last week. Wireless revenues are comfortably growing (China Mobile, Iusacell, Rogers, TIM Brazil, ), while wireline revenues are falling. The combination of wireline/ wireless operations provided low (if any) revenue growth. With few exceptions, SPs were reporting loss in the quarter or decreasing income.