Net sales for the division, Nokia’s largest, are now expected to reach €3.9 billion ($5.1 billion) in the quarter. Total smartphone sales are now forecast at 15.9 million units, of which 4.4 million are the company’s Lumia smartphones running the Windows Phone operating system from Microsoft Corp. (NASDAQ: MSFT).
The company attributed the jump to “better than expected financial performance in the Mobile Phones business unit and Lumia smartphones.” Nokia also cited lower-than-expected operating expenses in the devices and services group due to better-than-expected cost reductions from its restructuring program.
Sales at its joint venture with Siemens A.G. (NYSE: SI), Nokia Siemens Networks, are also tabbed to come in higher than previously expected. Compared with a previous estimate for an operating margin of 8%, the company now expects operating margin of 13% to 15%.
For the first quarter of 2013, Nokia now expects devices and services margin of about -2%, plus or minus 4%. The company cited “competitive industry dynamics” (promotional pricing) and a traditionally weak quarter for sales as drags on quarterly results.
The stock is up 18.6% in premarket trading this morning at $4.45 in a 52-week range of $1.63 to $5.87.
There is a simple question to ask here: If Nokia can have results which are better than expected, or less bad, then can Research in Motion Ltd. (NASDAQ: RIMM) do the same? Anything is possible, and RIM shares are up about 3% at $11.84 in early trading.
UPDATE: Shares are up more than 21% shortly before the open, at nearly the average daily volume already.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
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.