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Nokia (NOK) soars 20% premarket on Q4 guidance, saying it "exceeded expectations and achieved...

  • Thursday, January 10, 8:17 AM ET
    Nokia (NOK) soars 20% premarket on Q4 guidance, saying it "exceeded expectations and achieved underlying profitability." Both phones and Nokia Siemens Networks results are better than expected. (PR)
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This news story has 45 comments:

  •  
    WOOT!! Hope OM got out of his short
    10 Jan, 08:18 AM Reply Like
  •  
    Who's OM?
    10 Jan, 09:05 AM Reply Like
  •  
    Ocean Man he's a contributor here on SA,
    10 Jan, 09:07 AM Reply Like
  •  
    nice. I am glad I am long Nokia. its only going to get better from here on
    10 Jan, 08:20 AM Reply Like
  •  
    This is a beautiful thing. Good job NOK and those who stuck with it
    10 Jan, 08:21 AM Reply Like
  •  
    Holy crap I'm so glad I added more to my position as it kept falling yesterday.
    10 Jan, 08:22 AM Reply Like
  •  
    here comes the squeeze of the year! For of you who didnt let dark pool trading scare you off, congrats, no hold on for a real gain, this sis nothing, we maybe looking a double digits
    10 Jan, 08:23 AM Reply Like
  •  
    HOOYAY!!! I added all my buying power yesterday :) Thanks
    10 Jan, 10:50 AM Reply Like
  •  
    good day for NOK holders.
    10 Jan, 08:23 AM Reply Like
  •  
    I added to my position yesterday and had second thoughts when the price slide further.
    10 Jan, 08:26 AM Reply Like
  •  
    Long Nokia @ average usd3.00
    Go Nokia Go Nokia
    Upppppppppp
    10 Jan, 08:29 AM Reply Like
  •  
    Nokia is BACK baby! Looks like I may be buying myself a new Benz in 2013 after all LOL.
    10 Jan, 08:30 AM Reply Like
  •  
    wow...! now that is some spike
    10 Jan, 08:32 AM Reply Like
  •  
    Yesterday was a scary day after I added NOK shares to my portforlio. Today will be a great day as a reward for my confidence on Nokia.
    10 Jan, 08:40 AM Reply Like
  •  
    4.4 million Lumias in Q4.....Not the 6-7-8-9 million some of you were speculating.
    10 Jan, 08:41 AM Reply Like
  •  
    Hans do you have a link for that number? Trying to nail down some facts for my sheets.
    10 Jan, 08:44 AM Reply Like
  •  
    Stilll a respectable number. lumia 920 was in short supply and has only been selling since november.
    10 Jan, 08:50 AM Reply Like
  •  
    Yes, I admit I am surprised by that number. it is less than I thought it would be.
    10 Jan, 08:54 AM Reply Like
  •  
    Total smartphone volumes of 15.9 million units composed of 9.3 million Asha full touch smartphones, 4.4 million Lumia smartphones and 2.2 million Symbian smartphones.

    From Nokia PR
    10 Jan, 08:55 AM Reply Like
  •  
    What is important is that the lumia line is outselling the Symbian line of phones. Elop was right about the burning platform and they have turned the tide by going wp 7/8.

    From here on out Nokia will come out with more and more phones based on windows phone at different price points. I bet eventually they will replace the asha line of phones with phones based on windows 7.8 with a price around $100 dollars usd.
    10 Jan, 08:56 AM Reply Like
  •  
    It's better than expected for the Lumia. It is a pretty good phone. I would like to know how much profit can NOK possibly make per phone when they are so heavily subsidized. They need more volume IMO.
    10 Jan, 08:59 AM Reply Like
  •  
    Even better news actually.

    If they can be profitable on just 4.4M Lumia handsets, this means all or some of several things have happened:

    a) Cost-cutting is proceeding better than expected, processes have been streamlined and manufacturing economies of scale have been optimized.
    b) NSN and Navteq have outperformed, being able to carry the excesses of the smartphone/devices division
    c) The Profit per Unit of each Lumia (which some shorts claimed to be "sold at cost") is far better than expected, allowing just 4.4M units to garner a solid profit base and raise the Devices division back into the black.

    All of these are bullish - imagine the price action once the China deal effect is fully realized. Q1 2013 will be the quarter the Lumia line improvement (and the WP8 effect) shows its true effects on Nokia's bottom line. And if Q4 2012 results are already this good, imagine the results on Q1............
    10 Jan, 09:01 AM Reply Like
  •  
    Will MSFT be up in sympathy?
    10 Jan, 09:08 AM Reply Like
  •  
    Nok actually says Q1 will be weaker that Q4:

    operating margin in the first quarter 2013 to be approximately negative 2 percent, plus or minus four percentage points.
    10 Jan, 09:12 AM Reply Like
  •  
    Can't be, considering they'll have more time to sell the Lumia in this quarter. Worse case scenario is that they are about even in terms of shipments.
    10 Jan, 09:19 AM Reply Like
  •  
    "Nok actually says Q1 will be weaker that Q4:"

    Yes, but its not inconceivable they could surprise on the upside again. We're barely midway into January so far. Chinese New Year buying season has yet to begin......
    10 Jan, 09:19 AM Reply Like
  •  
    what they need is more lumias to sell.
    10 Jan, 09:20 AM Reply Like
  •  
    Apologies if I came across like a pessimist - Just picking fun at some of the estimates I have seen here. The good news is, Nokia plans to stick it out in the Lumia game, as proven by the announcement of a metal version next year, plus getting into the tablet business. Plus they will always have high quality as one of their brand attributes, which will be a halo for whatever they sell.
    10 Jan, 09:27 AM Reply Like
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    The platform was a warming frying pan till the company jumped into the fire. There was time to transition to (whatever) if it had been well executed.

    Luckily rather than sinking they're swimming.
    10 Jan, 09:35 AM Reply Like
  •  
    It can only get better,they have the brand name in china and have got in there with the biggest carrier, same with India, could not keep shops with enough supplies everywhere else, Elop has executed the turnaround well to this point and there is no reason to expect he will not carry on from here.
    10 Jan, 08:41 AM Reply Like
  •  
    http://bit.ly/VN19JR
    Nokia statement attached, will be very interesting to see how many are sold in a full quarter.
    10 Jan, 08:51 AM Reply Like
  •  
    thanks tomybhoy
    10 Jan, 08:59 AM Reply Like
  •  
    I had been in a biotech stock which I desparately wanted to get out of. Yesterday it popped and I was able to realize a small profit and I immediately plowed that money into NOK yesterday when it was falling. Now I have as much as I can in NOK just in time.
    10 Jan, 08:52 AM Reply Like
  •  
    When we look at it, the new Lumia's have had about 6 weeks sales with very limited supplies, the number here cannot be seen as true demand for the phones as practically every place ran out of supplies which no doubt hurt the sales numbers.
    Nokia now have some transparency in numbers and can ramp up to the required numbers very quickly, suppliers to Nokia are well worth looking at now.
    10 Jan, 09:07 AM Reply Like
  •  
    "Quarterly net sales in devices and services was about 3.9 billion euros ($5.09 billion). It sold a total of 86.3 million devices. Smartphones accounted for 6.6 million units, of which 4.4 million were Windows-based Lumia handsets, the company said." (Reuters)
    10 Jan, 09:11 AM Reply Like
  •  
    long nokia... good job nokia.
    10 Jan, 09:12 AM Reply Like
  •  
    That's much better than I was expecting, but...

    Only 4.4 million Lumia sales... Knew that mid quarter release was going to just suck.

    Asha on the other hand is absolutely knocking it out of the park. Those are great wee phones (you should try a 311).

    A substantial number of the Lumias must have been 920s to make that cash on 4 million sales. Which means they're going to do good business 2013 with the full lineup already in place.
    10 Jan, 09:24 AM Reply Like
  •  
    To be fair the Lumia was launched part way into the quarter with supply constraints right off the bat. That said, I was hoping for a bigger number as well.
    10 Jan, 02:42 PM Reply Like
  •  
    nokia has passed the US4.2 resistance after few tries. Can easily goes up to US5 now. :)..... add more portpolio before tol late.
    10 Jan, 09:25 AM Reply Like
  •  
    for those folks want to lock some of the gains Feb 4.50 call is selling for 30c and Feb 4.00/3.00 bear put spread cost 16c. Sell 1 call can buy you 2 put spread to protect your position all the way down to 3.00.
    10 Jan, 10:06 AM Reply Like
  •  
    Decent quarter. Looking forward to Q1. Hoping to see 10 million sold and 98ยข EPS. Operating margins still need improvement though.

    Imagine the profitability when the Android Nokia phones roll out.

    C'mon Elop...get a tablet ready!!
    10 Jan, 10:07 AM Reply Like
  •  
    sorry DVL , NO ANDROID NOKIAS !!!
    10 Jan, 10:12 AM Reply Like
  •  
    OMG. Aren't you guys glad I talked up NOK? I told you it wasn't just the crazy dividend. I was in on this early and often. And it has put my portfolio in good steads. My next phone is a Lumia 920 on Sprint, my two fav stock picks.
    10 Jan, 10:13 AM Reply Like
  •  
    Best call of 2013 for my portfolio to double my position yesterday.

    Profitability is the magic word even when taking into consideration the amount of cost cutting done.

    Need to sell more high end 920s, given the supply constraints, this is entirely possible as Nokia reinvents its brand in the USA. Worldwide looks promising. Asha is just amazing.

    Did not sell a single share this morning. Long term challenges can be met with what was reported today. Another note: Elop's vindicated his moves and will no longer be questioned. He's what Nokia needs.
    10 Jan, 11:13 AM Reply Like
  •  
    Did anyone tell Tristan Louis or Forbes about the good news?
    10 Jan, 02:33 PM Reply Like
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