Nokia Corp. (NYSE: NOK) reported third quarter results before markets opened this morning. The mobile handset maker posted a net loss of €0.07 (about $0.09) per share on revenues of €7.2 billion (about $9.4 billion). In the same period a year ago, the company reported earnings per share of €0.03 on revenues of €8.98 billion. Third-quarter results compare to the Thomson Reuters consensus estimates for a net loss of $0.13 per share and $9.03 billion in revenues.
The company’s CEO said:
As we expected, Q3 was a difficult quarter in our Devices & Services business; however, we are pleased that we shifted Nokia Group to operating profitability on a non-IFRS basis. … While we continue to focus on transitioning Nokia, we are determined to carefully manage our financial resources, improve our competitiveness, return our Devices & Services business to positive operating cash flow as quickly as possible, and ultimately provide more value to our shareholders.
Nokia’s outlook for the fourth quarter appears to be on track for a seventh consecutive quarter of losses. The company predicts a negative operating margin of 6%, plus or minus 4%. Nokia says that the fourth quarter is a “ramp up quarter for our new Lumia products.” The transition to new products also means that the usual seasonal volume spike will not take place this year. Nokia does expect its Nokia Siemens Networks joint venture to post an adjusted operating margin of 8%, plus or minus 4%.
While not as bad as feared, Nokia’s quarterly results do not inspire a lot of confidence. Next quarter looks to be another loser and the ramp-up to sales of the new Lumia phones based on the Windows Phone 8 operating system from Microsoft Corp. (NASDAQ: MSFT) could mean that sales will not really generate any kind of volume until the second quarter of next year.
In any event, Nokia’s shares are up about 3% in premarket trading at $2.94 in a 52-week range is $1.63 to $7.38. Thomson Reuters had a consensus analyst price target of around $2.33 before today’s report.
Paul Ausick
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.