For the third quarter, the company's early high-end guidance was 8.2 billion euro. Now the range is 8.4 to 8.5 billion euro. Earnings took a similar leap from an expected high of 0.17 euro per share to a new range of 0.18 to 0.19 euro -- although the earnings numbers include at least a 0.01 euro gain (at the low end) due to one-time divestments.
The company reported higher-than-expected cell phone delivery volumes and lower-than-anticipated declines to average selling prices. This bodes well, as the company reported a push into emerging markets in its last quarterly release. Prices were pushed down as customers bought cheaper, lower-margin phones -- a move that might temporarily act to depress margins and profitability but might also afford the company some long-term advantage in the form of brand development and customer mindshare.
Competition is still tough. Motorola
Cash-rich Nokia trades at 17.7 times estimated earnings for this year. If you ask me, that's a fairly rich premium for a company that's expected to compound earnings by 10% a year for the next five years (slightly less than the 10.6% expected for the S&P 500). But Nokia is the premium name in a fast-growing marketplace that it very profitably dominates, and that whole emerging-market strategy might play much better than people expect.