Motorola Earnings: Here’s Why Investors Don’t Like These Results

Motorola, Inc. (NYSE:MSI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.48%.

Motorola, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 60% to $1.12 in the quarter versus EPS of $0.70 in the year-earlier quarter.

Revenue: Decreased 1.91% to $2.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Motorola, Inc. reported adjusted EPS income of $1.12 per share. By that measure, the company beat the mean analyst estimate of $1.04. It missed the average revenue estimate of $2.13 billion.

Quoting Management: Greg Brown, chairman and CEO of Motorola Solutions, said: “Our Government business performed well in the second quarter though our Enterprise business continues to be challenged primarily due to market conditions. We remain confident in the fundamental drivers of the business. We will maintain our focus on growing our revenues, managing our cost structure and expanding our operating margin.”

Key Stats (on next page)…

Revenue increased 6.79% from $1.97 billion in the previous quarter. EPS increased 69.7% from $0.66 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.95 to a profit $1.25. For the current year, the average estimate has moved up from a profit of $3.66 to a profit of $4.56 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)