MOT warned @ 8:01 pm Jan 4th,2007

Discussion in 'Wall St. News' started by Cdntrader, Jan 4, 2007.

  1. Nice of them to wait til the ecns closed lol. Maybe no one will notice huh?:cool:

    Motorola Says Fourth-Quarter Results Missed Forecast (Update1)

    By Rob Golum

    Jan. 4 (Bloomberg) -- Motorola Inc., the world's second- largest mobile-phone maker, said fourth-quarter profit and sales missed forecasts because of lower-than-projected handset revenue.

    Sales were $11.6 billion to $11.8 billion, less than the company's Oct. 17 forecast of as much as $12.1 billion. Profit will be 13 cents to 16 cents a share, below the internal forecast at the start of the quarter, Schaumburg, Illinois-based Motorola said today in a statement distributed by PR Newswire.

    Concern over the pace of mobile-phone sales has mounted as component suppliers including Texas Instruments Inc. cut sales and profit forecasts because of flagging demand and falling prices. Motorola blamed the shortfall on low-priced handsets and said sales in some regions didn't meet projections.

    Shares of Motorola fell 2 cents to $20.55 at 4 p.m. in New York Stock Exchange composite trading. They had declined 12 percent in the past year.

    Motorola was expected to earn 38 cents a share excluding some costs in the quarter, the average of 24 analyst estimates compiled by Bloomberg. The project sales of $12 billion.

    To contact the reporter on this story: Rob Golum in Los Angeles at

    Last Updated: January 4, 2007 20:28 EST
  2. thats huge. the beginning of many warnings. the profit cycle is topping and heading down
  3. S2007S


    wow, waited for the 8pm closing, very interesting.

    Is that why the futures are down 2.5 on the s&p and 4 on the nasdaq or is that because the ^n225 is off nearly 2%?
  4. Huge earnings miss, too. Earnings are going to be - are you ready? - 67% less than previously projected.

    Motorola Slashes Guidance

    By TSC Staff
    1/4/2007 9:28 PM EST

    Motorola (MOT - news - Cramer's Take - Rating) warned late Thursday of a steep fourth-quarter earnings shortfall, citing an unfavorable product mix in its handset business.

    The Schaumburg, Ill., tech titan said it expects to make 13 to 16 cents a share for the quarter ended Dec. 31, far short of the 39-cent Thomson Financial analyst consensus estimate. The company said it expects to post revenue of around $11.7 billion, compared with a $12 billion Wall Street target.

    "We are very disappointed with our fourth-quarter financial performance," said CEO Ed Zander, "but we remain committed to the strategic direction and long-term financial targets we discussed at our annual analysts meeting in July 2006. We will discuss plans to improve operating profitability on January 19 when we announce fourth-quarter earnings."

    Motorola said it expects the fourth-quarter bottom line to be hit to the tune of a dime a share by investment-related losses, stock compensation expenses, business reorganization charges and unusual tax expenses.

    "The shortfall in both sales and earnings occurred in the Mobile Devices segment and is attributed to an unfavorable geographical and product-tier mix of sales as compared to the company's internal forecast," Motorola said. "In the fourth quarter, Mobile Devices unit sales were approximately 66 million units, up 23% from the third quarter of 2006 and up 48% from a year ago.

    The fourth-quarter results for both the Networks & Enterprise and Connected Home segments are expected to meet or exceed the internal expectations of the company at the start of the fourth quarter.

    The news comes as Motorola's handset-selling rivals, ranging from Nokia (NOK - news - Cramer's Take - Rating) to Samsung, take aim at one of the icons of Motorola's turnaround under Zander, the hot-selling Razr handset. But now the Razr, which fetched $600 in its must-have days, is moving into middle age as a freebie in promotional giveaways by cell-ph
  5. S2007S


    I have seen misses, but this is a huge miss. The RAZR was keeping MOT on top. Today with people updating phones to the newest craze the RAZR is falling out of touch quick. Its already played out and MOT doesnt have anything quite as popular as that.
  6. They tried to keep things rolling with the Krazr, but it looks like it has bombed.

    I think this is a very mature segment, and product replacement cycles are much longer than they would like, and cost sensitivity trumps feature-rich offerings.

    It will be VERY interesting to see what Apple has to offer the world with the anticipated iPhone.
  7. N225 is down on the oil sell-off (as it has done before on big multi-day oil sell offs)..........

    My hunch on the oil sell-off is more about the possible faster than expected economic slow down here in the US, over the warm winter in the NE spin....LOL.
  8. bullish imo...

    check out all the other tech and the like warnings....

    all bought up....

    unless of course... "this time is different"
  9. Mvic


    Will be interesting to see how Rimm acts on the news
  10. This is no big deal, it's been priced into the stock. Mot is already down 6 bucks from mid october.
    #10     Jan 4, 2007