When it comes to earnings there are BEATS, and there are ... beats. Nokia
Shares of the Finnish phone maker finished the day up about 2.5% on slightly better-than-expected fourth-quarter results. Revenue fell 21% while adjusted profits came in at 6 euro cents a share, 2 cents better than Wall Street's estimates.
That's about as good as the news gets. Big gains by Apple's
|Feature phones sold||93.9 million||95.0 million||(1%)|
|Feature phone revenue (EUR)||3,040 million||3,948 million||(23%)|
|Smartphones sold||19.6 million||28.6 million||(31%)|
|Smartphone revenue (EUR)||2,747 million||4,396 million||(38%)|
Source: Nokia press release.
Ugh. Just ... ugh.
In the same quarter in which Apple sold 37 million iPhones, Nokia managed to sell just 19.6 million smart devices, including "well over 1 million" Lumina Windows Phone handsets in partnership with Microsoft
Yet the most disturbing part of Nokia's report comes on the cash-flow line. The former Finnish phenom reported a 74% drop in operating cash flow, to 634 million euros. Liquid assets declined 20% as investments skyrocketed, adding harsh reality to a difficult truth Nokia investors have to live with: CEO Stephen Elop has made an all-in bet on Windows Phone that has yet to pay off.
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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He owned shares of Apple at the time of publication. Check out Tim's Web home, portfolio holdings, and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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