Nokia took it on the chin in Q3 — revenue down 5%, earnings down 28% — but the market saw it coming. Shares in the company are off about 65% from their 52-week high. So at this point, anything slightly positive is good news. And this morning, shares in the company are trading up about 6%, after the company offered: “Nokia expects industry mobile device volumes in the fourth quarter 2008 to be up sequentially.” Beyond that, it expects to hold onto its (currently diminished) market share, if not add to it slightly.
The other spot of good news was on the margins front, which are holding up:
Marketwatch: Gross margins at the key devices and services division rose to 36.5% from 36.1% in the second quarter, suggesting cost control at the company was highly efficient in the quarter.
“As a result of our strong operational management and market position, Nokia was able to achieve solid margins and operating cash flow of 1.3 billion euros for the third quarter of 2008,” Chief Executive Olli-Pekka Kallasvuo said in a statement.
mocoNews also caught comments from CEO and chairman Olli-Pekka Kallasvuo on the company’s call:
“When we spoke about the aggressive competition in the third quarter, we decided tactically not to participate in the price competition. We have a responsibility as the market leader, when the market leader moves, the market moves. We will continue to manage the business tactically, will look at it quarter by quarter. It’s a combination of margin and markets. Some competitors can be pretty competitive at times, but it’s market position and it’s brand and it’s distribution that count. Economic gravity will prevail with overly aggressive pricing.”