Signs of revival for Nokia

Dylan Bushell-Embling
11 Jan 2013
00:00

Nokia stock surged yesterday, after the company revealed its devices and services business exceeded expectations in the fourth quarter.

In a stock exchange release, the company revealed that its mobile business - including its Lumia range - did better than expected. As a result, the company expects to report an underlying operating profit for the segment in Q4.

The company is estimating it shifted 86.3 million units in the quarter, for total net sales of around €3.9 billion ($5.17 billion).

Smart device sales accounted for 6.6 million units – of which 4.4 million were Lumia smartphones - and net sales of €1.2 billion.

Nokia expects its non-IFRS devices and services operating margin for the quarter to be between breakeven and 2%.

The vendor also revealed it is anticipating better than expected results from its Nokia Siemens joint venture, including net sales of €4 billion and a non-IFRS operating margin of 13% to 15%.

Nokia will publish its full Q4 and 2012 results on January 24.

Some pundits have hailed the announcement as a sign that CEO Stephen Elop's sweeping restructuring efforts may be starting to bear fruit.

In the wake of the announcement, Nokia's NYSE-listed stock grew 18.67% to $4.45 in regular trading. In Helsinki, Nokia shares grew as high as €3.54, from an opening price of €2.90, before closing 10.8% higher at €3.32.

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