MOT: Motorola’s Earnings are Not So Easy-Come After All
When Motorola, Inc. (MOT - Annual Report) said last week that they would be taking a charge, I said:
When I do the math for taxes and share counts, it looks like the charge will amount to $0.03 per share. Which doesn’t sound like much until you check the earnings estimates, and find that $0.03 was all the company was expected to earn in the quarter. Easy come, easy go.
Turns out I was being too generous. Yesterday the company announced preliminary estimates of second quarter 2007 financial results:
Although the company has not finalized its financial results for the quarter, the company expects second quarter sales to be in the range of $8.6 billion to $8.7 billion. The company previously estimated that second quarter sales would be essentially flat with first quarter 2007 sales of $9.4 billion. The company expects a second quarter GAAP loss per share from continuing operations in the range of $(0.02) to $(0.04), including estimated net charges of approximately $0.03 – $0.04 per share related to previously announced workforce reductions and other highlighted items.
The company’s shortfall in sales and earnings for the second quarter is primarily attributable to lower overall unit volumes in the Mobile Devices business in Asia and Europe.
The previous expectations were already factoring in Motorola’s fall from RAZR-driven grace. So now the question becomes whether the additional weakness is more company-specific problems or whether the entire industry is running into trouble. Samsung’s numbers today should provide a clue.
Update: Sony Ericsson is taking share: Sales in the quarter were boosted by a 59 percent rise in handset shipments to 24.9 million from 15.7 million the previous year.
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[...] an Interpreter So Motorola (MOT – Annual Report) reported earnings today, and seeing as how they preannounced them last week they came in right on target. The press release was full of gung-ho corporate-speak [...]