Wednesday, November 14, 2012

Motorola Rallies On Q1 Beat

Motorola (MOT) shares are trading higher this morning on better-than-expected Q1 results.

The company reported sales of $5.04 billion, a hair below the Street at $5.1 billion, and down from $5.37 billion a year ago. But profits of 3 cents a share were above the company’s guidance, which had called for a loss of 1-3 cents a share, and ahead of the Street, which had expected a loss of a penny a share. Results for the quarter include about a penny a share in special items, as well as 4 cents a share for stock-based compensation and amortization of intangibles.

The mobile devices unit had sales of $1.6 billion, with shipments of 8.5 million handsets, including 2.3 million smart phones; in Q4, the company 12 million handsets, with 2 million smart phones. Sales for the unit were down 9% from a year ago.

The home segment had sales of $838 million, down 18%; enterprise mobility sales were $838 million, up 6%; networks unit sales were $896 million, down 7%.

For Q2, the company sees profits of 7-9 cents a share, excluding 4 cents a share in stock-based compensation and amortization expenses, as well as other special charges. The Street has been expecting profits of 3 cents.

MOT in early trading is up 57 cents, or 8.2%, to $7.49.

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