Motorola Solutions 2Q profit more than triples but misses estimates, revenue slips
Motorola Solutions Inc. (MSI) on Tuesday reported net income that more than tripled in its second quarter but fell short of analysts' expectations.
The Schaumburg, Illinois-based company said profit rose to $824 million, or $3.22 per share, from $258 million, or 94 cents per share, in the same quarter a year ago.
Earnings, adjusted for one-time gains and costs, came to 47 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 62 cents per share.
The communications equipment maker said revenue decreased 7 percent to $1.39 billion from $1.5 billion in the same quarter a year earlier, below analysts' expectations of $1.96 billion.
For the current quarter, Motorola Solutions expects adjusted earnings of 35 cents to 41 cents per share. Analysts are forecasting earnings of $1.01 per share, according to FactSet. The company also expects revenue to decline by 7 percent to 9 percent year-over-year. Analysts are expecting revenue of $2.12 billion, about the same as a year earlier.
The company's stock fell $2.31, or 3.6 percent, to $61.80 in premarket trading.
As of Monday's closing price, Motorola shares had fallen $3.39, or 5 percent, to $64.11 since the beginning of the year, while the Standard & Poor's 500 index has risen 4.9 percent.