Motorola Projects Better-Than-Expected Profit

Motorola Solutions Inc., the remaining fragment of the corporate icon that commercialized the cellphone, on Monday reported an 8% revenue decline in its latest quarter, though earnings came in better than expected and the firm said annual profit would top market expectations.

The company projects annual profit of $4.45 to $4.65 a share with sales increasing 5% to 7%, while analysts forecast $3.87 a share for the year with sales improving 0.2%. For the current quarter, Motorola expects 37 cents to 42 cents a share of earnings as sales fall 4% to 6%, compared with analysts' views for 43 cents a share in profit and sales declining 2.5%.

Motorola's forecasts include the projected impact of its Airwave Solutions acquisition, as Motorola Solutions continues to build its public-safety operations, which already account for about two-thirds of its business.

Shares, down 4% over the past 12 months, rose 2.4% after hours.

Over all for its latest quarter, Motorola Solutions reported a profit of $279 million, or $1.57 a share, compared with $201 million, or 87 cents a share, a year earlier. Excluding reorganization charges and other items, profit from continuing operations rose to $1.58 a share from $1.25 a year earlier. Revenue fell 8% to $1.68 billion.

Motorola Solutions had projected adjusted profit of $1.45 to $1.50 a share with revenue declining 6% to 8%.

Gross margin narrowed to 49.8% from 50% a year earlier.

Results in the latest period reflect a 1% revenue decline in North America, or flat when adjusted for currency fluctuations, and continued weakness in its Latin America and Europe operations.

North America, which in recent quarters had helped offset declines in other regions, accounts for more than half of sales.

Anne Steele contributed to this article

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

February 22, 2016 18:15 ET (23:15 GMT)

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