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Motorola Slammed Late After Sales Miss
Published: October 17, 2006 5:06 PM
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CHICAGO (AP)--Motorola Inc. (MOT), the world's second-largest cellphone maker behind Finland's Nokia Corp. (NOK), reported a 45% decline in third-quarter profit Tuesday on revenue that came in well below analysts' expectations. Its after-hours stock price tumbled.
The earnings met Wall Street's estimates, but sales of the company's hot-selling Razr phones left total revenue still nearly half a billion dollars lower than forecast.
Earnings for the July-through-September period were $968 million, or 39 cents a share, down from $1.75 billion, or 69 cents a share, a year earlier.
Excluding certain items, the Schaumburg, Ill., company said operating earnings were 34 cents a share, matching the average estimate of analysts surveyed by Thomson Financial.
Revenue was $10.6 billion, up 17% from $9.05 billion a year ago, but well under the average analyst estimate of $11.07 billion.
"While our third-quarter sales were slightly below our guidance, we are pleased with our earnings," said Chief Executive Ed Zander.
Revenue from Motorola's cellphone division jumped 26% to $7.03 billion as the company shipped 53.7 million units - an increase of 39% - and expanded its global market share to an estimated 22.4% in the quarter.
Sales from its networks and enterprise business were up only slightly to $2.78 billion.
Shares in Motorola sank $2.74, or 10.75%, to $22.75 in extended-hours trading after closing down 64 cents, or 2.5%, at $24.85 on the New York Stock Exchange before the report was released. They touched a six-year high of $26.30 Friday.
(END) Dow Jones Newswires |
