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To: DaveMG who wrote (2205)	10/11/1999 10:20:00 PM
From: Ruffian	Respond to of 13582

Alex Cena;WSJ> October 11, 1999 Motorola's 3Q Seen In Line Or Better, Stock Up 4% By SHAWN YOUNG NEW YORK -- Motorola Inc. (MOT) is likely to report a roughly sevenfold increase in operating earnings, meeting or slightly beating Wall Street expectations when it releases third-quarter results late Tuesday. The Schaumburg, Ill., telecommunications equipment giant benefited both from a restructuring that cut costs and from strong demand for wireless phones and semiconductors. "It's both a good turnaround story and a good fundamental story," said Argus Research analyst David Toung. "The two strongest revenue engines - wireless handsets and semiconductors - are doing quite well." The First Call/Thomson Financial consensus estimate is that Motorola will post operating earnings of 53 cents a share. A year ago the company lost $42 million, or 7 cents, on revenue of $7.15 billion. Excluding an acquisition-related writeoff and one-time gains from asset sales, the company earned $40 million, or 7 cents. Anticipation of strong results boosted the company's NYSE-listed shares 3 11/16, or 4%, to 96 11/16 on volume of 3.8 million shares, compared with daily average of 3.5 million shares. While Motorola's results are expected to be solid and perhaps a penny or two above consensus estimates, a blowout is unlikely due to seasonal factors, said Salomon Smith Barney analyst Alex Cena in a recent report. "The September quarter is a tough quarter to have an absolute blowout because of normal seasonal issues," Cena said. The main drain on results is summer vacations, which are often quite lengthy in Europe. Motorola will also have a tough time beating expectations by much because it sold its Semiconductor Components Group earlier than expected, Cena said. Cena said he expects Motorola to report revenue of $7.9 billion, a 10.5% increase. He forecasts earnings of 53 cents. Motorola has been on a cost-cutting drive for more than a year. Margins are improving, analysts said, at the same time that the company's new digital phones are selling well and the semiconductor industry is reviving. In the past, Motorola's results have been hurt by sluggish growth in the semiconductor industry and its own slowness in offering digital phones, analysts said. Cena said he thinks other telecommunications equipment makers will also have solid, but not spectacular quarters. He said he expects in-line or better results from Lucent Technologies Inc. (LU), Nokia Corp. (NOK), Cisco Systems Inc. (CSCO), Qualcomm Inc. (QCOM) and Tellabs Inc. (TLAB). Nortel Networks Corp. (NT) is likely to come in right on target; while results from L.M. Ericsson Telephone Co. (ERICY) may come in below consensus, Cena said. -By Shawn Young, Dow Jones Newswires; 201-938-5248 shawn.young@dowjones.com Briefing Book for: MOT