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| Tuesday, October 17, 2006 |
Motorola 3Q Profits Drop 45 Percent on Lower-Than-Expected Sales
Motorola Inc., the world's second-largest cell-phone maker behind Finland's Nokia Corp., reported a 45 percent decline in third-quarter profit Tuesday on revenue that came in well below analysts' expectations.
The earnings met Wall Street's estimates, but sales of the company's hot-selling Razr phones left total revenue still nearly half a billion dollars lower than forecast.
Earnings for the July-through-September period were $968 million, or 39 cents a share, down from $1.75 billion, or 69 cents a share, a year earlier.
Excluding certain items, the Schaumburg, Ill.-based company said operating earnings were 34 cents per share, matching the consensus estimate of analysts surveyed by Thomson Financial.
Revenue was $10.6 billion, up 17 percent from $9.05 billion a year ago but well under the consensus estimate of $11.07 billion.
Shares in Motorola closed down 64 cents, or 2.5 percent, at $24.85 on the New York Stock Exchange before the report was released. They touched a six-year high of $26.30 last Friday. |
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