Instant view: Nokia posts surprise Q3 profit (Reuters)

HELSINKI (Reuters) ? Nokia (NOK1V.HE) reported a smaller than expected fall in third quarter profits on Thursday, boosted by strong sales of simple cell phone models.

Nokia reported third quarter underlying earnings per share of 0.03 euros, compared with a loss of 0.01 euros in a Reuters poll of analysts and a profit of 0.14 euros a year ago.

The following are analysts reactions to the news.

FRANCISCO JERONIMO, IDC:

"Nokia results announced today show how painful the transition has been from Symbian to Windows Phones. Despite the investment on making Symbian more attractive, the new versions of Symbian Anna and Symbian Belle are not helping Nokia in any way. Consumers and mobile operators are looking forward to see the new Windows Phones. For most mobile operators in Europe, it is completely pointless to support a 'ghost' operating system. They want Windows Phones and that is what Nokia needs to deliver next week at Nokia World in London. Failing to deliver the Windows Phones this year puts Nokia in a very dangerous position on the market."

MIKAEL RAUTANEN, INDERES

"Dual SIM phones saved the quarterly profit, volumes were clearly above expectations. It is also positive that it seems they managed to stop the smart phone collapse."

"An important message was that the devices unit operating profit remains positive through the fourth quarter."

THOMAS LANGER, WEST LB

"It's pretty much in line with what we had expected, also regarding Q4."

"I think that it's maybe a stronger finish to the year than some expected, but the real test will happen during 2012. And this is the reason why we remain skeptics of the stock. I think investors are falling into a valuation trap."

GEOFF BLABER, CCS INSIGHT:

"Device & Services performance was ahead of expectations. Whilst the storm clouds haven't parted, operational improvement combined with positive news at Nokia World next week will raise confidence for 2012."

"The decline in ASP reveals quite how aggressively Nokia competed to deliver shipments ahead of expectations but crucially, the positive operating margin demonstrates a parallel improvement in operational efficiency."

(Compiled by Stockholm newsroom)

Source: http://us.rd.yahoo.com/dailynews/rss/tech/*http%3A//news.yahoo.com/s/nm/20111020/bs_nm/us_nokia_iv

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