No Relief In Sight ...
... but 45 minutes after the opening bell MOT is trading up $ while NOK is trading down $0.26 and QCOM is down $0.45.
>> Motorola Guides Lower
TSC Staff
TheStreet
4/18/2007
thestreet.com
Motorola (MOT) swung to a first-quarter loss and guided below the Wall Street consensus for the second quarter.
The Schaumburg, Ill., handset maker lost $218 million, or 9 cents a share, from continuing operations for the quarter ended March 31, reversing the year-ago continuing operations profit of $656 million, or 26 cents a share. Sales fell to $9.43 billion from $9.61 billion a year earlier.
The company said the latest quarter was hit by 11 cents a share in restructuring and other charges. That puts it in line with the Thomson Financial analysts' consensus estimate, which was calling for a 2-cent profit.
"Over the past several weeks, we have made progress on the steps we outlined on March 21," said operating chief Greg Brown, referring to the company's plan to cut costs to return its struggling handset business to profitability. "In the Mobile Devices business, we are very focused on improving operating cash flow and profitability. Across the company, the previously announced cost-reduction actions are on schedule. In addition, we are identifying additional cost-structure improvements while ensuring that we do not compromise future growth opportunities."
Motorola said it expects to make 2 or 3 cents a share for the second quarter, as sales will be flat with first-quarter levels. Analysts had been looking for an 8-cent-a-share profit on sales of $10 billion.
• EPS -0.08 $ (pro forma $0.02)
• Q2 estimates similar proforma results as for Q1
Mobile devices segment:
• Shipped 45.4 million phones
• Sales $5.4 billion (-15% from year ago)
• Operating loss (pro forma) -231 million $
• Marketshare estimate 17.5% (that would mean ~260 million unit handset market)
The company expects to see gradual quarterly improvements in both sales and operating margin in the second half of the year. The company expects the Mobile Devices business to experience a gradual recovery in the second half and be profitable for the full year. Overall for the full year, Motorola expects to be profitable and to generate positive operating cash flow. ###
- Eric - |
