Motorola Mobility story updated from 4:07 p.m.
NEW YORK (
(MMI - Get Report)
, the Libertyville, Ill. handset maker gearing up for a
busy few weeks of Android debuts
, reported solid second-quarter earnings Thursday, but its full-year and third-quarter guidance -- both well below what analysts were expecting -- was dragging down its share price in extended trading by more than 7%.
- Motorola reported adjusted earnings of 9 cents a share on sales of $3.3 billion -- up 28% from the year-ago quarter -- for its second quarter.
- Analysts expected earnings per share of 6 cents on sales of $3.12 billion.
- Last quarter, following its split from sister company Motorola Solutions(MSI), the smartphone and tablet maker reported a narrower-than-expected loss of 8 cents a share on sales of $3.03 billion.
- Motorola closed trading Thursday down 89 cents at $22.91
whose worldwide smartphone market share
has been fading in the shadows of giants like
and Android rivals
, is under pressure to show growth and positive results following its Jan. 4 split from Motorola Solutions.
The company's product shipments for the second quarter were solid compared with analyst expectations -- it shipped 4.4 million smartphones and 440,000 Xoom tablets, above the 300,000 predicted.
|Motorola Mobility CEO Sanjay Jha
"In the second quarter, Mobile Devices launched several new smartphones in the U.S. and markets around the world. Revenues grew over 40% driven largely by Latin America and China, where sales more than doubled year over year," said CEO Sanjay Jha in a prepared statement. "With a focus on profitable growth and delivering differentiated LTE smartphones and tablets, we expect to achieve profitability in mobile devices in the fourth quarter and for the full year 2011."
Despite the steady gains in smartphone sales, the company guided conservatively for both the next quarter and the full year, predicting outlook of net earnings per share of zero to 10 cents and 48 to 60 cents, respectively .
For next quarter, excluding, analysts wanted to see 24 cents earnings per share, and 71 cents a share for 2011.
--Written by Maggie Overfelt in New York
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