Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) shares rose by more than 10% on today’s market after the company released an earnings report for the three months through September this morning. The firm’s earnings came in better than expected as the company saw sales of its Lumia smartphone range come in higher than ever before.
That left Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) with a much better than expected cash position at the end of the quarter, and the company managed to show slim earnings of one euro cent per share in the period. The company was expected to burn about 300 million euro of its cash in the three months through September.
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A report on the earnings from Evercore analysts Mark McKechnie and Zachary Amsel puts a price target of $5.25 on the company’s shares, though the analysts recognize that number may be out of date given the scope of this morning’s earnings. Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) showed results outside of its smartphone division were not exactly up to scratch, particularly in Nokia Siemens Networks.
NSN is the most important part of the new Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V). The business showed revenue of 2.6 billion euros for the three months period. The Evercore analysts were looking for revenue of 2.8 billion euros per share from the business. NSN operating margins came in at 8.6%, below the 10.6% estimate offered by Evercore analysts.
Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) results came in strong today, and the company’s cash position will be much better than expected when the firm finally splits from its mobile handset division. There will be problems ahead given the worse than expected results from NSN, and it’s unclear how much the company will be able to change those figures.
Nokia Corporation (NASDAQ:MSFT) decided to sell its mobile handset division to Microsoft Corporation (NASDAQ:MSFT) during the third quarter of the year. The good results from the Nokia Lumia smartphone business is materially positive for Microsoft going forward. That company released its own better than expected earnings report last Friday.
The great results that Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) showed from its Lumia division showed that the company sold 7.4 million units of its smartphones in the quarter, up from 2.9 million units in the same quarter of 2012.
Microsoft Corporation (NASDAQ:MSFT) investors will be happy with today’s results, but Nokia’s performance on its businesses outside of mobile will cause some concern for that firm’s shareholders.