Following a somewhat lackluster quarter from rival Samsung, it looks as
though Motorola will regain its spot as the No. 2 global handset manufacturer.
The company posted strong fourth-quarter results, but a cautious first-quarter
outlook dragged down its stock.
For the recently ended fourth quarter, Motorola posted net income of $654
million, or 27 cents a share, which is a 27 percent increase over the $489
million, or 20 cents a share, it recorded in the comparable year-ago period.
Revenue also was up year-over-year to $8.84 billion, which surpassed analysts'
on average expectations of $8.46 billion.
Thanks to 20 new handset introductions during the quarter, Motorola increased
its quarterly shipments by 42 percent over the previous year to 31.8 million.
The wireless handset division posted operating earnings of $526 million on sales
of $4.9 billion, the company said.
Motorola estimates its share of the wireless market is now 16.6 percent,
compared to 13.4 percent in the previous quarter, when Samsung usurped its spot
as the No. 2 wireless handset manufacturer. "The market share resurgence of the
Personal Communications Segment in the fourth quarter strengthened Motorola's
number two position in the wireless handset industry," Motorola CEO Ed Zander
said in a statement.
Looking ahead, Motorola predicts first-quarter sales will ring in at $7.5
billion to $7.9 billion. Its earnings per share (EPS) forecast came in below
analysts' forecasts at between 17 cents and 20 cents. Analysts' on average were
calling for EPS of 20 cents
At one point in noon hour trading, Motorola shares slipped $1.26, or 7.2
percent, to $16.17 on volume of 29.5 million shares - average daily volume is
15.9 million shares.