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VIDEOMotorola Buoyed by Android in Second Quarter
By
Mike Schuster
Jul 29, 2010 10:50 am
Company edges past analysts' expectations due to popular Droid line.
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Excluding some costs, the company earned $0.09 a share which narrowly beat Wall Street estimates of $0.08. Second-quarter revenue dripped 1.5% to $5.41 billion, but was roughly $200 million higher than expectations.
Revenue in Motorola's mobile-devices division had mixed results, falling 6% from last year to $1.7 billion. However, its adjusted operating loss shrank from $239 million in 2009's second quarter to $109 million.
The road ahead looks bright, but not blinding, for Motorola. Despite the smear campaign launched by Apple (AAPL) in response to its own reception nightmare, the Droid X is fighting back with dynamite sales, selling out at Verizon and Best Buy (BBY) locations and boosting the stock 20% this month. Motorola's Droid line and other devices accounted for 8.3 million handsets shipped. And with the Droid 2 launching next month, the company's CEO of mobile-device business Sanjay Jha was optimistic about the future.
"We are in a strong position to continue improving our share in the rapidly growing smartphone market and improving our operating performance," he said in a statement. Indeed, if Android's market share continues to grow against the iPhone and BlackBerry (RIMM) devices, having several popular smartphones with the Android OS can prove to be quite beneficial for the company.
Motorola's financial outlook for the third quarter remains solid -- excluding certain costs, profit will be $0.10 to $0.12, which jibes with analyst predictions at Bloomberg.
At press time, shares rose to $7.95 during trading.Twitter: @mcs212
No positions in stocks mentioned.
