Motorola Hits Lowered Estimates

Motorola MOT matched lowered fourth-quarter estimates and guided in line for the first quarter.

The Schaumburg, Ill., wireless titan made $624 million, or 25 cents a share, for the quarter ended Dec. 31, down from the year-ago $1.2 billion, or 47 cents a share. Sales rose to $11.79 billion from $10.04 billion a year earlier.

The report comes two weeks after Motorola stunned Wall Street by slashing its fourth-quarter estimates, citing a sharp decline in sales of high-end handsets. Before the warning, analysts were looking for a 39-cent profit on sales of $12 billion.

"As I said earlier this month, we are disappointed with our fourth quarter operating earnings performance. However, the company generated strong revenue growth and met or exceeded our goals in many areas during the quarter. I am confident that we remain well positioned for continued growth and success," said Ed Zander, chairman and CEO.

"Looking at the full year, I am pleased with our progress. Our business remains solid, and we will continue to execute on our focused, strategic plan to create value for our shareholders. We remain committed to increasing our profitability, while delivering compelling new products and solutions to our customers in 2007," Zander added.

For the first quarter, Motorola expects sales of $10.4 billion to $10.6 billion, in line with the $10.48 billion Wall Street estimate.