Motorola Mobility Holdings Inc. Earnings: Swung to a Loss but Beat Estimates

Wall St. Cheat Sheet

S&P 500 component Motorola Mobility Holdings Inc. dropped to a fourth quarter loss, but results topped expectations. Motorola Mobility develops innovative technologies, products, and services, including mobile and wireline technology, digital communication, information, and entertainment experiences.

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Motorola Mobility Holdings Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $80 million (27 cents per diluted share) in the quarter. The diversified communication services company had net income of $80 million or 27 cents per share in the year earlier quarter.

Revenue: Rose 0.3% to $3.44 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MMI reported adjusted net income of 20 cents per share. By that measure, the company beat the mean estimate of 9 cents per share. Analysts were expecting revenue of $3.4 billion.

Quoting Management: “In the fourth quarter, we received very positive consumer response to Motorola RAZR, which combined an iconic brand with ultra-thin in an innovative smartphone. Our Home business continues to be a leader in the industry’s transformation to all IP, with unique solutions that enable rich media experiences across any screen,” said Sanjay Jha, chairman and chief executive officer, Motorola Mobility. “We remain energized by the proposed merger with Google and continue to focus on creating innovative technologies.”

Key Stats:

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with 0 cents versus a mean estimate of a loss of 10 cents per share.

Looking Forward: Analysts seem more negative about the company’s results for the next quarter than ninety days ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of 6 cents a share to a loss of 13 cents over the last ninety days. For the fiscal year, the average estimate has moved from a loss of 3 cents a share to a loss of 20 cents over the last sixty days.

Competitors to Watch: Research In Motion Ltd. , Apple , Nokia Corporation , Cisco Systems, Inc. , Motorola Solutions Inc , Arris Group, Inc. , Harmonic Inc. , Cobra Electronics Corp. , Blonder Tongue Labs, Inc. , BigBand Networks, Inc. , and Wegener Corporation .

Stock Performance: Shares of MMI were up 0.2% from the previous close.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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