Muddy Trails for Motorola

Rapid recovery probably isn't at hand, but Motorola (MOT Quote) fans are optimistic that most of the dreadful downside drama is over.

The No. 2 mobile phone giant is due to report first-quarter earnings before the market opens Wednesday, giving investors another installment of the great Motorola collapse story.

Last month the Schaumburg, Ill., wireless tech shop slashed $1 billion off its first-quarter sales estimates, dismissed its CFO and poured $3 billion more into a stock repurchase program. The stunning turn of events capped the company's fourth consecutive quarterly disappointment.

Analysts have warned investors to brace for a little more negative news out of the company's all-important handset unit for the most recent quarter. A full report may show negative margins as the company tried to mop up a big surplus of phones to bring inventory back to normal, say the Wall Street researchers. ...