Motorola Solutions Q2 Profit From Cont. Opns Plunges; Backs Weak Revenue Outlook

(RTTNews) - Motorola Solutions, Inc. (MSI) reported Tuesday that its second-quarter net earnings attributable to the company climbed to $824 million from prior year's $258 million. Earnings per share soared to $3.22 from $0.94 last year.

The latest results were benefited by significant earnings from discontinued ioperations.

On a continuing operations basis, earnings plunged to $78 million or $0.30 per share from last year's $223 million or $0.81 per share.

Adjusted earnings from continuing operations was $0.47 per share. On average, 15 analysts polled by Thomson Reuters expected earnings of $0.63 per share for the quarter. Analysts' estimates typically exclude special items.

Sales declined 7 percent to $1.39 billion from $1.50 billion last year. Analysts expected sales of $1.96 billion. The decline in sales primarily reflected lower sales in North America state and local markets as well as in Asia Pacific & the Middle East.

Looking ahead for the third quarter, Motorola Solutions expects a revenue decline of 7 to 9 percent, with adjusted earnings per share from continuing operations in the range of $0.35 to $0.41 per share.

For full year 2014, the company still expects a revenue decline of low- to mid- single digits, excluding IDEN, with adjusted operating margins from continuing operations of approximately 18.5 percent of sales, consistent with the previous outlook.

The company has increased its target for cost reductions from $200 million to approximately $300 million by the end of 2015.

In pre-market activity, MSI shares are currently trading at $60, down $4.11 or 6.41 percent.