Nokia Corporation Shares Plunge on Weak Fourth-Quarter Revenues
Nokia released quarterly results this morning for the fourth quarter of 2013. In light of these figures, the pending $7.4 billion all-cash sale of Nokia's handset business to Microsoft will turn Nokia into a reliably profitable going concern.
Adjusted earnings from continuing operations fell 27% year over year to $0.11 per share. On this basis, sales declined 21% to $4.8 billion.
Including the money-losing handset division, total Nokia Group earnings plunged 40% to land at $0.04 per share. Total sales fell 25%, stopping at $8.3 billion. This is the yardstick against which you should measure analyst estimates, which pointed to $0.04 of adjusted earnings on revenue of $8.6 billion.
Nokia said it sold 30 million Lumia handsets in the full-year 2013, about twice as many as in 2012.
The Microsoft deal is expected to close in the first quarter, pending the last handful of regulatory approvals. 99% of Nokia shareholders voted in favor of the sale.
"We are diligently working toward defining Nokia's future direction," said interim CEO Risto Siilasmaa in a prepared statement. "I am pleased with the progress we have made thus far in our strategy evaluation and excited by the opportunities ahead for each of our three continuing businesses: NSN, HERE and Advanced Technologies."
Siilasmaa underscored the Nokia Siemens Networks division's strong profitability and the "long-term transformational growth opportunities in the automotive market" for the HERE mapping service, formerly known as Ovi Maps.
At the time of writing, Nokia traded down 4.6% in pre-market NYSE action. The underlying stock to these American Depositary Receipts plunged 5.3% on the Helsinki market.
-- Material from The Associated Press was used in this report.
The article Nokia Corporation Shares Plunge on Weak Fourth-Quarter Revenues originally appeared on Fool.com.Fool contributor Anders Bylund has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. 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.
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