Motorola Earnings: Revenue Misses Analyst Expectation, Stock Drops

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 2.26%.

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Motorola, Inc. Earnings Cheat Sheet

Results: Net income increased 129.89% to $423 million ($1.18 per diluted share) in the quarter versus a net gain of $184 million in the year-earlier quarter.

Revenue: Rose 9.22% to $2.44 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Motorola, Inc. reported adjusted net income of $1.10 per share. By that measure, the company beat the mean analyst estimate of $1.02. It missed the average revenue estimate of $2.45 billion.

Quoting Management: “It was another outstanding year for Motorola Solutions as we continued to deliver strong operational and financial results,” said Greg Brown, chairman and CEO of Motorola Solutions…

“We strengthened our product portfolio, expanded operating margins, generated $1.1 billion in operating cash and returned $2.7 billion in capital to our shareholders.”

Key Stats:

Revenue increased 13.33% from $2.15 billion in the previous quarter. Net income increased 105.34% from $206 million 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 $0.65 to a profit $0.67. For the current year, the average estimate has moved up from a profit of $3.05 to a profit of $3.14 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)