Why Nokia Shares Skyrocketed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Nokia have skyrocketed today by as much as 20% after the Finnish smartphone maker released better-than-expected preliminary results.
So what: Sales of the company's Lumia smartphones in the fourth quarter increased to 4.4 million units, while its Asha family of lower-end devices sold 9.3 million units. The devices and services business is expected to generate $5.1 billion in revenue, and "achieved underlying profitability" due in part to lower-than-expected operating expenses.
Now what: The results are evidence that Nokia's turnaround is under way and progressing, despite the troubles it has had over the past few years competing with rivals. First-quarter outlook calls for an adjusted operating margin of negative 2%, plus or minus 4%, in the devices business. The company will release full financial results on Jan. 24.
Interested in more info on Nokia? Add it to your watchlist by clicking here.
The article Why Nokia Shares Skyrocketed originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.