Instant View: Nokia Q4 beats forecasts

HELSINKI (BestGrowthStock) – The world’s top cellphone maker Nokia reported on Thursday forecast-beating fourth quarter results.

Following are analysts’ comments.

THOMAS LANGER, WEST LB

“These are really mind-blowing results, especially in the ASP (average selling price) reversal in Devices, and the decent-to-good operating margin.”

“This company had a very strong finish to the year, something that could not be expected after a rather negative news flow from LG, Qualcomm and other players.”

“However, I think there is definitely a risk one gets over excited — the challenges in the smartphone markets will become obvious to everybody, and we think the competition will intensify throughout the year.”

PIERRE FERRAGU, BERNSTEIN

“Nokia has a stabilized pricing power and will fully benefit from the rebound in handsets in 2010 and from the “democratization trend” of smartphones.”

“As never before Nokia guided for a first quarter of 2010 in devices and services making our current expectation the low end of their guidance. We are therefore confident Nokia can deliver our current expectations for 2010.”

OLIVER FINGER, DZ BANK

“Quite solid Q4 figures, given the previous expectations and the tough market environment.”

“Positive: Nokia was able to stop price erosion in the device market. ASP is EUR 63 compared to our estimate of EUR 62.”

“Negative: No change in outlook, in particular concerning market share. We stay cautious on Nokia’s ability to pick up significant momentum in the smartphone market.”

MARTTI LARJO, NORDEA

“It was a good set of numbers, their volumes and market share rose and smartphone markets improved.”

“The improved profitability of the device unit promises that the profitability this year will improve from the 2009 level.”

“Analysts will have to update their views on Nokia.”

MICHAEL SCHRODER, FIM BROKERAGE

“All in all it looked good — profitability, volumes, everything — both Q4 results as well as the guidance for the first quarter.”

“The most surprising was perhaps that it gained back market share in smartphones to 40 percent, when the expectation was it could even drop further from the around 35 percent in the previous quarter.”

HANNU RAUHALA, POHJOLA BANK

“Nokia’s shares are boosted by strong results. Growth of volumes were strong and the average selling price (ASP) was pretty good and Devices unit’s profitability was good.”

GEOFF BLABER, CCS INSIGHT

“Nokia will be relieved to have turned a corner and returned to healthy year-on-year volume and margin growth. But despite the improvement in smartphone performance, Nokia’s high tier portfolio remains a critical focus point for 1H10.”

“Nokia’s smartphone performance saw a reassuring improvement despite a strong quarter for RIM and Apple. Nokia maintains a valuable advantage in sub 200 euros smartphone but improvement of its high tier portfolio will be essential to rebuild margins in 2010.”

Penny Stocks

(Editing by Elaine Hardcastle

(Reporting by Helsinki Newsroom; [email protected]; +358 9 6805 0244))

Instant View: Nokia Q4 beats forecasts