Motorola Earnings: Here’s Why the Stock is Falling Now

Motorola, Inc. (NYSE:MSI) delivered a profit and met Wall Street’s expectations, AND 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 7.82%.

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Motorola, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.86% to $0.66 in the quarter versus EPS of $0.59 in the year-earlier quarter.

Revenue: Rose 0.87% to $1.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Motorola, Inc. reported adjusted EPS income of $0.66 per share. By that measure, the company missed the mean analyst estimate of $0.66. It missed the average revenue estimate of $2.05 billion.

Quoting Management: “Despite a challenging enterprise market and modest revenue growth in the first quarter, our disciplined focus on cost management and return of capital to shareholders delivered double-digit growth in earnings per share,” said Greg Brown, chairman and CEO of Motorola Solutions. “We remain confident in the fundamental drivers of the business and our ability to drive improved operating earnings for the year.”

Key Stats (on next page)…

Revenue decreased 19.17% from $2.44 billion in the previous quarter. EPS decreased 40% from $1.10 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.86 and has not changed. For the current year, the average estimate has moved up from a profit of $3.71 to a profit of $3.72 over the last ninety days.

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

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