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Its shares jumped 16p to 616.5p or nearly 3% after it forecast better than expected revenue growth for the first half of 2013 albeit with a slight dip in operating margin due to investment in bidding for contracts.
Higher margins: Reported operating margin increased 164bps driven by organic operating margin improvement and the positive impact on operating margin due to exchange rate, as a result of the higher negative impact of exchange rates on net sales relative to operating profit.
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Banc of America Securities raised the 12-month price target on Micron Technology to $14 from $11. Banc of America attributed the action to improvements in gross and operating margins, due to migration to lower geometries and better yields.
In addition Tencent's operating margin grade of A is due to its rate of 37.72%, nearly doubling the sector avg.
Nokia expects Location & Commerce non-IFRS operating margin in the first quarter 2013 to be negative due to lower recognized revenue from internal sales, which carry higher gross margin, and to a lesser extent by a negative mix shift within external sales.
Due to weakness in Oil & Gas we are also nudging down our operating margin forecasts by 10bps in both years, despite some benefit from acquisitions.
Due to expected increases in marketing expenses related to new product launches, the operating margin fell to 13.28% from 14.05% a year earlier, but this was better than expected.
Operating margins are down due to aggressive marketing expenses, a lower average selling price, and reduced demand for high-end models (which generate the majority of profits in the portfolio).
Operating margin fell from 13.2%to10%0%.
Operating margin increased healthily from 17.3%to19.1%17.3%to19.1%
Operating margin declined to 10.4% from 11.3%.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com