SCHAUMBURG, Ill. (AP) — Motorola Solutions' fourth-quarter net income rose 2 percent and strong government sales energized its revenue, but shares dipped in premarket trading on its guidance.
The company anticipates first-quarter adjusted earnings from continuing operations between 46 and 52 cents per share, well short of the 77 cents that Wall Street was looking for.
Shares slumped 8 percent before the opening bell Wednesday.
Earnings from continuing operations were $343 million, or $1.31 per share, for the three months ended Dec. 31. That compares with $336 million, or $1.18 per share, a year earlier.
Excluding stock-based compensation expense and other items, earnings from continuing operations were $1.67 per share, which was four cents better than Wall Street had expected, according to a poll by FactSet.
Revenue climbed 3 percent to $2.5 billion from $2.44 billion as government sales increased 4 percent.
For the year, Motorola Solutions Inc. earned $1.1 billion, or $4.06 per share. In the previous year it earned $881 million, or $2.95 per share.
Adjusted earnings from continuing operations were $4.73 per share.
Annual revenue was basically flat at $8.7 billion.
The company expects first-quarter revenue to fall 4 percent to 6 percent from the prior-year period. Motorola Solutions expects 2014 revenue to be between flat and a gain of 2 percent.
Shares fell $5.56 to $61.55 in premarket trading.