After Q3 09, when Nokia reported their first loss in over a decade due to a huge write-off for Nokia Siemens Networks, no one thought the company would bounce back. Well they did, and their numbers are looking a hell of a lot better. Between October and December of 2009 Nokia generated almost 12 billion EUR in sales, up 22.2% from Q3 09, but down 5.3% from Q4 08. Operating profit was 1.47 billion EUR, up almost 99% from Q3 09, and up almost 19% from Q4 08. Operating margins rose from 7.6% in Q3 09 to 12.3% this quarter, which is up from the 9.8% margins in Q4 08.
The Finnish company shipped 126.9 million devices, up 12% from this time last year and up 17% from Q3 09. Of those devices, 20.8 million were smartphones, up from 15.1 million a year ago, and up from 16.4 million in Q3 09. Out of those smartphones, 4.6 million were Nokia Nseries models, and 6.1 million were Nokia Eseries models, for a combined total of 10.7 million. That’s up from a combined 8.9 million Nseries and Eseries sales in Q3 09. Nokia estimates that they now own 40% of the smartphone market, up from 35% in Q3 09.
How about North America? Nokia sales are up 22.6% compared to Q3 09, but down 7.3% compared to Q4 08.
Overall a solid Q4. Nokia employees should pat themselves on the back for doing a great job! The stock is up almost 10% in early trading hours.
[Note: I totally didn't wake up early enough to catch the earnings call, which is a shame since the tone of everyone's voice, plus the analyst Q&A session, offer a second perspective that you can't get from reading a press release.]
Update: As for Nokia in 2009, versus Nokia in 2008, the company has 19.2% less sales, 50.2% less operating profit, and their operating margins shrank from a healthy 13.9% to single digits: 8.5%. There’s only one direction the company can go from here now, and that’s up.