AAPL's AIM partner MOT's earnings beats Street , INTC comes in short
MOT's semi-conductor sales up , should set a positive stage for AAPL :
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" Motorola 2nd-Qtr Profit 44c-Shr: Earnings Instant Insight
Schaumburg, Illinois, July 13 (Bloomberg) -- The following
is a summary of Motorola Inc.'s second-quarter earnings.
Expected Market Reaction
Limited. Motorola Inc., the world's No. 2 cellular-telephone
maker and third-largest computer-chip company, said second-
quarter earnings rose, fueled by a turnaround in its chip
business and sales of new digital cellular phones.
Profit from operations climbed to $273 million, or 44 cents
a share, $6 million, or 1 cent, in the year-earlier period. Some
unpublished forecasts were for earnings as high as 45 cents. The
average analyst estimate from First Call Corp. was 41 cents.
Behind the Numbers
Sales rose 7 percent to $7.51 billion from $7.02 billion.
Motorola's popular StarTAC line of digital cellular phones
is selling well and may be nibbling at No. 1 Nokia Oyj's customer
base as well as No. 3 Ericsson AB's. Brian Modoff, a Deutsche
Banc Alex. Brown analyst, expected Motorola's cellular phone
sales to increase 72 percent from the year-earlier quarter.
Analysts expect the restructuring of Motorola's sprawling
semiconductor business and the shedding of less profitable chip
lines to increase profit margins. The company also took advantage
of a resurgence in worldwide demand for chips by focusing on its
more-profitable semiconductor products.
What the Experts Say
''They had strong growth in both handsets and semiconductors
and it shows in the numbers,'' said Modoff, who rates Motorola a
''strong buy.'' He was expecting profit of 43 cents a share.
Previous Market Reaction
Motorola rose 3/16 to 83 1/8 on April 14, the day after it
reported better-than-expected first-quarter earnings and said it
would meet or beat second-quarter earnings estimates of 37 cents
to 42 cents a share.
Market Performance
Motorola shares have gained 58 percent this year, setting
new highs the past few weeks after more than doubling from a 52-
week low of 38 3/8 on Oct. 5. The shares fell 2 1/2 to 96 1/2
today.
Jul/13/1999 17:25
(C) Copyright 1999 Bloomberg L.P."
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Should be interesting tomorrow .
MOT took a Iridium hit but still showed a bigger than expected profit while INTC came in a few cents short .
Jim K. |
