HELSINKI (Reuters) - Nokia's earnings fell less than expected in the first quarter and the company signed a final agreement to start using Microsoft software, sending its shares 3 percent higher.
The following are immediate comments from analysts:
"It's a bit of a no-score draw really, to be honest. You've got a solid set of numbers but guidance is bad. But it's not the cataclysm that had been feared. We were worried that they might miss Q2 revenue by 10-15 pct because we'd heard the numbers out of Asia were bad. You've got a little bit of relief going on today but it probably doesn't have legs in it."
"The first quarter was very strong, much better than expected."
"It seems the situation is under control, there were no dramatic changes."
"In the second quarter guidance one can see the component shortage, caused by the Japan quake. The sales forecast is weaker than expected, but margin is at a good level."
"The second quarter guidance was kind of a disappointment."
"Also 2011 margin forecast is slightly disappointing."
"Finalizing the deal with Microsoft was expected."
"Nokia's quarterly results were impacted by the disaster in Japan and the seasonality after the holiday sales season."
"These results show that Nokia is still facing strong challenges in both feature phones and smartphones segments."
"Nokia needs to deliver the new Windows Phones within estimated and announced timeframes, not to disappoint the market as it happened in the past with the improvements announced, but not delivered, to Symbian."
"Good Q1 numbers, a little bit disappointing guidance for Q2, Q3, for devices and services and little new information in the release about the Microsoft agreement."
"There is always volatility in connection with Nokia's reports but I don't see much that will change people's view on the share on the back of this."
"The numbers were quite alright, many were fearing much weaker numbers, but there was no radical fall."
"The phone unit profitability development was as expected, there was no drop as was feared."
"The market share fall in smartphones was expected."
"It's a little bit of a mixed report. The Q1 figures were better than expected but on the other hand the outlook for sales in Q2 is worse than expected. They announced pretty big cost cutting in operating expenses and signed an agreement with Microsoft."
"Guidance was a bit weak but cost cutting measures were a bit higher than I expected - they will cut 1 billion euro in operating expenses."
GEOFF BLABER, ANALYST, CCS INSIGHT "Performance was largely consistent with expectations and there will be a sigh of relief that there appeared to be no considerable downturn at the low-end to compound Nokia's difficulties in the high-tier."
"Finalisation of the agreement with Microsoft means Nokia can now focus on execution, but margin guidance underlines that difficult times lie ahead as it transitions the portfolio."
Reporting by Helsinki Newsroom