Nokia Corporation (ADR) (NOK) Misses Estimates, Shares Plunge

Nokia Corporation (ADR) (NOK) Misses Estimates, Shares Plunge
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Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) reported its second quarter earnings this morning, missing the expectations of analysts. The company’s reported losses were €.06. Shares fell as much as 5 percent at the New York Stock Exchange in pre-market trading but then partially recovered. Net sales for the quarter were €5.7 billion.

Nokia Corporation (ADR) (NOK) Misses Estimates, Shares Plunge

Analysts were expecting the company to report losses of 3 cents per share on revenue of €6.4 billion.

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Nokia partially breaks down handset sales

Net sales for Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s Devices and Services division fell 6 percent quarter over quarter to €2.7 billion. The brightest area was sales of the company’s Lumia Windows Phones, which rose 32 percent quarter over quarter to 7.4 million handsets. The struggling company has rapidly been expanding the Lumia line, and it looks like it’s paying off.

Mobile phone sales fell 4 percent quarter over quarter to 53.7 million units. The company’s feature phones were one area of major concern in the last earnings report because of the decline, but Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) noted “some signs of recovery in the latter part of the quarter” in terms of its mobile phone sales. The handset maker did start rolling out its refreshed Asha phone toward the end of the quarter, but it did not elaborate in its results as far as which mobile phones were recovering.

Other key results from Nokia

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) received a bit of a boost from Nokia Siemens Networks, which had a non-IFRS operating margin of 11.8 percent during the quarter. However net sales from the division fell 1 percent quarter over quarter to €2.8 billion.

“We’re pleased to report an underlying operating profit for the fourth consecutive quarter on a group level,” said Nokia Chief Executive Officer Stephen Elop in a statement. “We benefited from another strong performance at Nokia Siemens Networks, which continued to deliver well against its focused strategy. With our recent announcement to purchase Siemens’ 50% stake in Nokia Siemens Networks, we believe we will create value for Nokia shareholders and look forward to strengthening Nokia Siemens Networks as a more independent entity.”

Net sales for Nokia HERE rose 8 percent quarter over quarter to €.2 billion. The division achieved a non-IFRS operating margin of 3.4 percent. Previously the margin had been expected to be in the negative.

Reported earnings per share for the first half of the year was a loss of €.13, compared to last year’s first half, which had a loss of €.63.

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