Sony Ericsson Mobile Communications announced better-than-expected third-quarter earnings today, beating analyst expectations. Nevertheless, the ailing OEM isn't gaining any real traction in the increasingly competitive cell phone market.
The joint venture between Sony and Ericsson reported a third-quarter net loss of $244 million, compared to a loss of $36 million in the year-ago quarter. Sales for the quarter dropped to $2.4 billion from $4.16 billion in the third quarter of 2008.
While Sony Ericsson did say in an earnings call that the decline in global handset sales was slowing, the company still saw poor shipments for the quarter compared to the same time last year. Sony Ericsson shipped 14.1 million units, an increase of 2 percent over the previous quarter and a decrease of 45 percent compared to the third quarter of 2008.
UBS Investment Research maintained a "Sell" rating for the company. UBS estimates that the OEM's slightly better earnings before taxes and interest (EBIT) implies about a 3 percent uplift to Ericsson's third-quarter consensus earnings-per-share forecast.
In early morning trading, Sony Ericsson was down 1.5 percent to $28.79 from an opening high of $29.11.