Nokia Soars as Healthy Network Sales Trigger Surprises in Q2 Earnings and Sales

The new face of a handset-free Nokia: A mobile network base station. Source: Nokia Networks.

Shares of Finnish mobile network builder Nokia (NYSE: NOK  ) jumped as much as 10.6% higher on the Helsinki exchange this morning -- and American depositary receipts followed suit in early Thursday trades, rising nearly 8% -- after the company reported results for the second quarter of 2014.

Sales from continuing operations fell 7% year-over-year, stopping at $4.0 billion. Adjusted earnings from continuing operations rose from $0.07 to $0.08 per diluted share. Both figures were slightly above analyst expectations, which called for earnings of $0.07 per share on $3.9 billion in sales.

Nokia recently sold its devices and services business to Microsoft (NASDAQ: MSFT  ) , with the deal closing approximately one month into the second quarter. About $6.5 billion of the $6.7 billion cash proceeds from this deal arrived in Nokia's coffers during the second quarter as a financial cash flows item. The remainder should follow in the second half of 2014. Furthermore, the agreement made Microsoft a major customer of Nokia's technology licensing operations.

According to Nokia's press materials, core operations in Nokia Networks rebounded from a first-quarter market trough. Networks sales increased by 10% from the first quarter, driving an overall 10% sequential rebound. The networks segment now accounts for 87% of Nokia's total revenues.

"Nokia's second quarter performance shows the strength of the company today," said CEO Rajeev Suri in a prepared statement. "Our expectations for the full year 2014 have improved and we now expect full year underlying profitability for Networks to be at or slightly above our long term target range of 5 to 10 percent."

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. And there's one small company making Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3042533, ~/Articles/ArticleHandler.aspx, 9/22/2014 4:23:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement