Wednesday's Early Winners & Losers
Motorola (MOT) stumbled after the Schaumburg, Ill., wireless company missed third-quarter sales and handset shipment targets. The company made $727 million, or 29 cents a share, from continuing operations for the quarter ended Sept. 30, down from the year-ago $1.74 billion, or 68 cents a share. The latest quarter included 5 cents a share in one-time charges, including 2 cents a share of stock-compensation expense.
Excluding those figures, latest-quarter earnings were 34 cents a share. Sales rose 17% from a year ago to $10.6 billion. Wall Street was looking for a 34-cent profit on revenue of $11.07 billion. The company said it shipped 53.7 million wireless handsets during the quarter, missing Wall Street's 54 million-unit target.
The company pointed to a big drop-off in the Nextel iDen two-way radio phones as part of the reason for the third-quarter sales slump. Motorola says dual mode phones for Sprint Nextel customers will be available later this quarter. Motorola expects fourth-quarter sales to fall somewhere in a range between $11.8 billion and $12.1 billion. Shares fell $1.93, or 7.8%, to $22.92.
Healthways (HWAY) surged 12% after the Nashville, Tenn.-based disease management company sharply raised 2007 guidance. The company made $14 million, or 38 cents a share, for the fourth quarter ended Aug. 31, up from the year-ago $8.3 million, or 23 cents a share. Revenue rose to $114.9 million from $87.6 million a year earlier.
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