Motorola Meets Q3 Expectations, But Stock Hit

Motorola on Tuesday announced third-quarter earnings in line with Wall Street's expectations, on top of an 18 per cent increase in sales.

For the quarter ended Sept. 30, earnings from ongoing operations reached $US598 million, or 26 cents per share, as compared to $US361 million and 16 cents, respectively, for the corresponding period last year, Motorola said in a statement. Revenue, meanwhile, increased to $US9.5 billion as compared to $US8.1 billion a year ago.

The earnings per share result was in line with the 26 cents per share consensus estimate of 25 analysts polled by First Call/Thomson Financial.

Motorola said its Semiconductor Products, Broadband Communications and Global Telecom Solutions segments had contributed to the growth in sales and operating profits.

During the quarter, Motorola also posted a one-off charge of $US95 million, which the company said primarily was due to the discontinuation of older wireless telephone products.

Ahead of the release of the earnings report, which was released after the New York Stock Exchange's close, Motorola shares closed Tuesday's trading at $US27.75, up 2.8 per cent on the day.

In after-hours trading, however, investors voted with their feet. Motorola last traded at $US25.75 according to online marketplace Island ECN.

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