Shares of Nokia trading in Helsinki are up 7.5% to €22.15 in early afternoon trading, on news the company's 2Q net income more than doubled to €2.83 billion ($3.87b), or €0.72/share, with adjusted EPS of €0.32 beating analysts' average estimate of €0.28. Sales growth of 28% to €12.6b however, missed analysts' forecast of €12.9. Nokia reported operating margin increased to 18.7% from 15.3% last year. Its global market share of mobile handsets expanded to 38%, from 36% in 1Q and 34% last year, with more gains expected in the current quarter. A Helsinki-based analyst commented, "Motorola's capitulation in the second quarter has paved the way for Nokia to take full advantage of its strong low-end portfolio without facing major price pressure." Nokia's ADRs are tracking ordinary share gains, last up 7.5% to $30.53 in the pre-market. Nokia's earnings call is at 8 a.m. EDT. Check for Nokia's earnings call transcript later today."
Sources: Press release, Bloomberg, MarketWatch
Commentary: Nokia Reportedly Makes $7 Billion Takeover Bid For Tellabs • Motorola’s Failures Positive For Nokia • Apple's iPhone Has Boosted Stock of Rival Handset Producers
Stocks/ETFs to watch: NOK. Competitors: MOT, ERIC, SNE, Samsung [not traded in the U.S., but an 18% component of iShares MSCI S. Korea (EWY)], AAPL, PALM, RIMM. ETFs: MTK, WMH
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