This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Motorola Beat The Street, Exits Red Ink

-- Updated with Motorola CEO comments on the earnings call

NEW YORK, ( TheStreet) -- Motorola's (MOT) mobility business swung to a profit in the third quarter after three years in the red on strong Android phone sales.

The Schaumburg, Ill. wireless titan posted adjusted earnings including proceeds from discontinued businesses of 16 cents a share Thursday, up from the two cent profit in the year-ago period and well above the 11 cent target analysts had for the bottom line.

Motorola

Third quarter sales were $5.8 billion, up 6% from year-ago levels and above the $5.66 billion analysts were looking for.

Motorola sold 9.1 million phones and included in that were 3.8 million smartphones, slightly more than analysts were expecting.

The strong performance helped ease concerns that Motorola's turnaround bid was already facing challenges in a competitive market.

Motorola shares have fallen 6% in the past month as investors started to worry that Motorola's three-way partnership with Google's (GOOG) Android, and the Verizon (VZ - Get Report) Droid campaign has lost some luster ahead of the Apple (AAPL - Get Report) iPhone arrival at Verizon in January.

The average selling price or ASP rose to $223 from $207 as smartphones grew as a portion of total sales.

On an earnings call with analysts, phone chief Sanjay Jha said he expected sales and the total number of phones to grow sequentially over third quarter levels. The increase will be driven by a push into so-called midrange devices, says Jha. Earnings in the fourth quarter will be higher, but offset to some degree by higher costs of new product launches, Jha says.

Asked about the continued commitment of Verizon to the Droid effort given the expected arrival of the iPhone at Verizon, Jha said Verizon and Motorola will "continue to invest in the Droid franchise."

Additionally, said Jha, Motorola is planning to "diversify with other operators." Analysts expect Motorola to push a number of mid-priced Android phones at AT&T later this year and next.

Motorola shares were up 6% to $8.60 in premarket trading Thursday.

--Written by Scott Moritz in New York.



>To contact this writer, click here: Scott Moritz, or email: scott.moritz@thestreet.com.

To follow Scott on Twitter, go to http://twitter.com/TheStreet_Tech.

>To send a tip, email: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
GOOG $524.05 0.00%
VZ $48.90 0.00%
FB $80.78 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs