Why Motorola Solutions (MSI) Stock Is Down This Afternoon

NEW YORK (TheStreet) -- Shares of Motorola Solutions Inc. (MSI) are down -2.71% to $61.86 after the company reported a -34% decline in first quarter profit, affected by lower sales to government customers and businesses.

Net income fell to $127 million, or 49 cents per share, for the quarter, from $192 million, or 68 cents per share, a year ago.

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Excluding items, the company earned 50 cents per share.

Revenue fell to $1.8 billion from $1.97 billion.

For the second quarter, Motorola Solutions expects a revenue decline of 5% to 8% compared with the second quarter of 2013, with non-GAAP earnings per share in the range of 58 cents to 64 cents per share.

For the full year 2014, the company expects a revenue decline of low single digits compared with 2013, with non-GAAP operating margins of approximately 18.5% of sales, consistent with the previous outlook.

TheStreet Ratings team rates MOTOROLA SOLUTIONS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MOTOROLA SOLUTIONS INC (MSI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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