Nokia Posts $10.7B Q4 Revenue, Proposes No Dividend
Nokia put up fourth quarter 2012 revenue of around $10.7 billion on an earnings per share of $0.08, both of which beat analyst estimates for the quarter. The revenue marked a 20 percent decrease anually but an 11 percent increase over the previous quarter.
In the Finnish handset maker’s report, CEO Stephen Elop stated he was pleased to have reached “underlying operating profitability” for the quarter and full year of 2012. But Nokia also appeared cautious, opting to propose no dividend, something Bloomberg noted the company hasn’t done in 143 years.
Nokia reported an operating profit of $585 million, a righting of the ship after losses year on year and in the previous quarter. The company also made note of an increase of more than $1 billion to its cash position since the previous quarter, moving it up to a total of $5.8 billion.
Nokia’s devices and services sector and Nokia Siemens Networks each accounted for roughly half of the quarterly revenue and both saw increases over their third quarter revenues.
Nokia’s stock saw a boost earlier this month when the company announced it had sold 4.4 million Lumia devices in the fourth quarter of 2012, part of a total 6.6 million smartphones moved. But the total number of handsets sold in the quarter climbed to 86.3 million on the strength of 79.6 million mobile phones sold, more than 90 percent of the total.
The fourth quarter Average Selling Price (ASP) for mobile phones more or less held steady year over year and over third quarter at $41 while the fourth quarter. ASP for smartphones jumped to $248, a 20 percent increase over the previous quarter and 33 percent YOY. Still, a total ASP of $60 marked a 15 percent drop YOY.
As Nokia shifts production to its flagship Windows Phones, it announced in its statement that the 808 PureView, released in mid-2012, was the last Symbian phone the company would produce.
As of 9:50 a.m. CST, Nokia's stock is down six percent.