Motorola Mobility Forecasts Miss Analysts Expectations; Stock Drops
Motorala Mobility Holdings Inc. will miss analysts' estimates for profit for the third quarter and full fiscal year in numbers, the company said Thursday in a statement.
Motorola Mobility was spun off in January from parent Motorola Inc. Profit excluding some charges will be 48 cents to 60 cents a share this year, the company said, compared to an average estimate from analysts of 66 cents per share.
Motorola Mobility said it will break even this quarter or have a profit of as much as 10 cents a share, compared with an average estimate from analysts of 24 cents a share.
The company is struggling to get long-term profitability back on track at the handset manufacturer as the company tries to compete against Apple and other rivals including Samsung and HTC Corp. that also use Google's Android platform.
Handset sales have steadied recently but they are far off what Motorola sold in 2007.
Motorola Mobility fell 7.5 percent to $21.20 in after-hours trading on the New York Stock Exchange. Earlier in the trading day, the stock dropped 3.7 percent.
"Motorola Mobility remains a business in turnaround," said Pierre Ferragu, an analyst at Sanford C. Bernstein in London, in a research note. "Motorola seems to struggle to defend pricing power. In that context, regaining scale is critical."
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