Nokia made an official statement today that its earnings over the third quarter of the fiscal year rose due to the increasing network spending by the phone carriers located in the U.S. and China.
According to the companys statement, Nokias profit excluding some items over the third three months of the year, increased from 6 cents per share to 9 cents per share. The company explained that its net sales over the period rose by 13% and reached €3.3 billion ($4.2 billion). This topped the analysts estimates pointing to €3 billion. Still, Nokia reported a pre-tax loss of €834 million in comparison with a €202-million profit posted over the same period a year ago.
The adjusted operating margin at the network unit, which generates about 90% of Nokias sales, rose from 8.4% a year ago to 13.5%. The units revenue increased by 13% after benefiting from a 38% increase in China and a 9% gain in Europe.
The Chief Executive Officer of Nokia, Rajeev Suri, said in a statement, cited by the Wall Street Journal: “Progress was widespread, with four of our six regions increasing sales.” As reported by the Financial Times, Mr. Suri also added: “Nokia’s third-quarter results demonstrate our strong position in a world where technology is undergoing significant change. We saw growth in all three of our businesses.”
The larger part of the net sales increase of the company is considered to be generated from its telecoms equipment and services unit.
Nokia added 4.15% to trade at €6.78 per share by 9:45 GMT, marking a one-year increase of 32.58%. The company is valued at €24.48 billion. According to the Financial Times, the 31 analysts offering 12-month price targets for Nokia have a median target of €6.00, with a high estimate of €8.50 and a low estimate of €4.70. The median estimate represents a -6.83% decrease from the last price of €6.44.
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