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CORRECTED-EARNINGS POLL-Patents boost to offset weak networks for Nokia

(Corrects consensus forecast for operating profit in paragraph 4)

* Nokia second-quarter results

* Due on Thursday, July 27 at 0500 GMT

* Q2 EBIT seen up 35 pct yr/yr

HELSINKI, July 24 (Reuters) - Telecoms gear maker Nokia is likely to see a boost to quarterly earnings on Thursday from a recent patent licensing deal with Apple that offsets weak demand in its main equipment business from network operators. However, investors have grown more nervous on the stock since loss-making Swedish rival Ericsson slashed its forecast on the global network market last week. In a Reuters poll of analysts, Nokia's networks sales are seen falling 3 percent in the second quarter from a year ago, while revenues from its technologies unit, including patent royalties, are seen up 40 percent following the deal with Apple. The average forecast for Nokia's second-quarter operating profit is 447 million euros ($520 million), up 35 percent from a year earlier. Network gear vendors have struggled in recent years as telecom operators' demand for faster 4G mobile broadband equipment has peaked, and major upgrades to next-generation 5G equipment appears to be years away. In recent quarters, Nokia has been outpacing Ericsson thanks to its acquisition of Franco-American rival Alcatel-Lucent. Nokia said in April its business momentum was improving. By contrast, Ericsson said last week it saw the wireless network market falling by a "high single-digit" percentage this year versus earlier guidance of a 2-6 percent decline. Shares of Nokia have fallen 3 percent since then. "(Ericsson) results and revised outlook raise some concern for Nokia given previous expectations for some stabilization in the market," Wells Fargo analyst Maynard Um said in a research note. He rates Nokia stock as "market perform". Apple and Nokia settled their patent dispute in May with a broad agreement in which Nokia will get bigger patent royalties from Apple but will also supply network infrastructure products to the U.S. company, and collaborate with it in digital health business. The companies have yet to give financial details on the deal. Once the world's biggest mobile phone maker, Nokia was caught out by the rise of smartphones and ended up selling the handset business to Microsoft in 2014, leaving it with the networks and a portfolio of technology patents. All forecast figures are in millions of euros, except EPS and dividend per share which are in euros.

2017:Q2 Mean Median High Low No Yr Ago Change% Prev.Q Net Sales 5 623 5 583 5 873 5 485 21 5 576 0.84 5 378 - Networks 5 079 5 080 5 300 4 917 21 5 222 -2.74 4 902 - Technologies 272 240 400 220 21 194 40.21 247 Gross income 2 270 2 245 2 512 2 155 20 2 205 2.95 2 196

(NON-IFRS)

Gross margin 40.4 40.3 42.8 39.0 20 38.9 3.86 40.8

(NON-IFRS)

EBIT (NON-IFRS) 447 433 581 331 21 332 34.64 341 - Networks 390 385 487 311 21 313 24.6 324 - Technologies 133 110 261 72.9 21 89.0 49.44 116 Pretax Profit 391 370 521 258 20 n/a 0 251

(NON-IFRS)

Net result 249 239 366 154 20 n/a 0 196

(NON-IFRS)

EPS (NON-IFRS) 0.04 0.04 0.06 0.03 20 n/a 0 0.03 EBIT -33.4 -42.5 270 -261 21 -760 95.61 -127 Pretax Profit -89.3 -97.3 206 -334 20 n/a n/a -282 Net result -70.5 -74.0 175 -213 20 n/a n/a -473 EPS - fully -0.01 -0.01 0.03 -0.04 20 n/a n/a -0.08

diluted

2017 Mean Median High Low No Yr Ago Change% Net Sales 23 469 23 489 24 100 23 093 21 23 641 -0.73 - Networks 21 268 21 297 21 665 20 831 21 21 830 -2.57 - Technologies 1 098 1 047 1 382 937 21 1 053 4.27 Gross income 9 586 9 568 10 144 9 316 20 9 657 -0.74

(NON-IFRS)

Gross margin 40.9 40.9 42.1 39.3 20 40.3 1.49

(NON-IFRS)

EBIT (NON-IFRS) 2 254 2 200 2 600 2 039 21 2 172 3.78 - Networks 2 043 2 044 2 280 1 904 21 1 943 5.15 - Technologies 533 533 783 303 21 579 -7.94 Pretax Profit 1 982 1 938 2 256 1 784 21 n/a 0

(NON-IFRS)

Net result 1 286 1 306 1 617 646 20 n/a 0

(NON-IFRS)

EPS (NON-IFRS) 0.23 0.23 0.28 0.11 20 n/a 0 EBIT 361 338 1 333 -350 21 n/a 0 Pretax Profit 73.4 87.7 986 -673 21 n/a 0 Net result -100 -12.5 823 -839 20 n/a n/a EPS - fully -0.02 0.00 0.14 -0.15 20 n/a n/a

diluted

Dividend per 0.18 0.18 0.20 0.14 15 0.17 5.88

share

2018

Mean Median High Low No Net Sales 23 714 23 862 24 524 22 371 21 - Networks 21 477 21 616 22 065 20 617 20 - Technologies 1 208 1 212 1 716 935 20 Gross income 9 810 9 731 10 472 9 378 20

(NON-IFRS)

Gross margin 41.4 41.3 42.8 39.5 20

(NON-IFRS)

EBIT (NON-IFRS) 2 824 2 778 3 422 2 323 21 - Networks 2 482 2 474 3 121 2 114 21 - Technologies 626 659 918 316 21 Pretax Profit 2 605 2 570 3 163 2 127 21

(NON-IFRS)

Net result 1 760 1 752 2 182 1 317 20

(NON-IFRS)

EPS (NON-IFRS) 0.31 0.31 0.38 0.23 20 EBIT 1 474 1 435 2 443 -420 21 Pretax Profit 1 315 1 207 2 237 192 21 Net result 863 780 1 686 134 20 EPS - fully 0.15 0.14 0.30 0.02 20

diluted

Dividend per 0.20 0.19 0.22 0.18 15

share

2019

Mean Median High Low No Net Sales 24 156 24 279 25 515 22 609 15 - Networks 21 874 21 967 22 968 20 756 14 - Technologies 1 294 1 330 1 519 964 14 Gross income 10 100 9 966 11 031 9 574 14

(NON-IFRS)

Gross margin 41.9 41.9 43.4 39.9 14

(NON-IFRS)

EBIT (NON-IFRS) 3 068 3 061 3 885 2 554 15 - Networks 2 648 2 600 3 519 2 120 15 - Technologies 696 725 928 435 15 Pretax Profit 2 857 2 840 3 626 2 350 15

(NON-IFRS)

Net result 1 938 2 005 2 538 1 432 15

(NON-IFRS)

EPS (NON-IFRS) 0.34 0.35 0.44 0.25 15 EBIT 1 974 2 159 3 133 -80.0 15 Pretax Profit 1 873 1 975 2 901 965 15 Net result 1 265 1 275 2 034 675 15 EPS - fully 0.22 0.22 0.36 0.12 15

diluted

Dividend per 0.22 0.21 0.26 0.18 14

share ANALYST RECOMMENDATIONS Of the 17 analysts who disclosed their recommendation on the Nokia stock, 12 answered positive and five Neutral. The following brokerages and investment banks participated in the poll:

Firm Outlook Nordea Markets Hold Handelsbanken Capital Markets Overweight JP Morgan Overweight Exane BNP Paribas Hold Societe Generale Buy

BMO Capital Markets

Barclays Capital Overweight Citi Investment Research Hold Credit Suisse Overweight Kepler Cheuvreux Buy Oddo Securities Buy

Redeye

Canaccord Genuity Hold Deutsche Bank Buy

Goldman Sachs & Co

Inderes Overweight Morgan Stanley Overweight

Oppenheimer & Co

SEB Equities Hold Sanford C. Bernstein Overweight UBS Buy

Estimates were collected from June 22 to July 20. Data provided by Inquiry Financial Europe AB (www.consensusestimates.com). Comparison figures are based on recast comparative segment financial information that was provided by Nokia on July 24. ($1 = 0.8588 euros)

(Reporting by Jussi Rosendahl; Editing by Mark Potter)