Motorola Solutions Profit Beats Estimates
Communications equipment maker Motorola Solutions Inc (MSI.N) reported a better-than-expected quarterly profit, helped by an 11 percent jump in sales to government customers, and forecast second-quarter results in line with estimates.
The maker of equipment such as two-way radios used by the police and handheld computing devices used in retail stores expects second-quarter revenue to grow about 6 percent, implying revenue of $2.10 billion.
It expects an adjusted profit of 65 cents to 70 cents per share from continuing operations, compared with analysts' expectations of 68 cents per share, according to Thomson Reuters I/B/E/S.
Motorola Inc split in two in January 2011 to form Motorola Solutions and Motorola Mobility (MMI.N), which sells mobile phones and television set-top boxes.
Net income for the first quarter, however, fell more than two-thirds to $157 million, or 49 cents per share.
Excluding items, the company, which competes with Cisco Systems Inc (CSCO.O) and European Aeronautic Defence and Space Co EADS.PA, earned 59 cents per share from continuing operations.
Government segment sales, which accounts for two-thirds of total revenue, rose to $1.3 billion. Total revenue rose 7 percent to $1.96 billion.
Analysts expected an adjusted profit of 54 cents per share, on revenue of $1.93 billion.
The company's shares, which closed at $48.66 on Tuesday on the New York Stock Exchange, have risen 22 percent since the split.