Thursday, October 25, 2012

Motorola Solutions beats estimates on government spending

(Reuters) - Motorola Solutions Inc reported a better-than-expected third-quarter profit on strong government spending but the communication gear maker forecast current-quarter earnings largely below market estimates.

The company expects fourth-quarter earnings of 98 cents to$1.03 per share from continuing operations on sales growth of 6 percent to 7 percent.

Analysts on average were expecting earnings of $1.02 per share, according to Thomson Reuters I/B/E/S.

However, the company raised its full-year 2012 sales growth outlook to between 6 and 6.5 percent from the 5 to 6 percent range it forecast earlier to reflect revenue from Psion Plc, which it acquired earlier this month.

The acquisition of the British company, which makes rugged and vehicle mounted computers for industrial use, is expected to boost Motorola's European business.

Net income rose to $206 million, or 72 cents per share, in the third quarter, from $128 million, or 38 cents per share, a year earlier.

Excluding items, the company earned 84 cents per share from continuing operations.

Revenue rose 3 percent to $2.20 billion.

The company, which dominates the two-way radio market with its land-mobile-radio systems and public-safety products, said sales in its government business rose 12 percent in the quarter.

Analysts on average had expected earnings of 73 cents per share on revenue of $2.15 billion.

Shares of the Schaumburg, Illinois-based company closed at $49.77 on Tuesday on the New York Stock Exchange.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)

Source: http://news.yahoo.com/motorola-solutions-beats-estimates-strong-government-spending-111141457--finance.html

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