Investors seem pleased NSN (NOK) had a non-IFRS op. margin of 8.4% in Q3; that's down from Q2's 11.8% and the year-ago period's 9.3%, but above the midpoint of a guidance range of 7% (+/- 4%).
Moreover, Nokia is guiding for a 12% NSN op. margin (+/- 4%) in seasonally strong Q4, and for the division to see "solid" Q/Q sales growth.
NSN's sales, pressured by seasonality, order lumpiness, and business/contract divestments, fell 7% Q/Q and 26% Y/Y to €2.6B, after dropping 17% in Q2. Mobile infrastructure sales -26%, services -23%. Op. profit totaled €218M vs. €328M in Q2 and €324M a year ago. Rival Ericsson saw only a 3% Y/Y sales drop in Q3.
The HERE division (location services) saw its sales drop 20% Y/Y to €211M, after declining 18% in Q2. Op. profit was €20M, down from €37M a year ago.
Devices & Services, soon to be in Microsoft's hands, saw a 19% Y/Y sales drop (better than Q2's -32%), an op. loss of -€47M, and an op. margin of -1.6%. 8.8M Lumias were sold, up from 7.4M in Q2 and 5.6M in Q1. Feature phone units +4% Q/Q and -27% Y/Y to 55.8M.
Ahead of the Microsoft deal's closing, gross cash totaled €9.1B at quarter's end, and net cash €2.4B. NSN's contributions to those figures were €2.7B and €1.5B.
Q3 results, PR