Motorola Solutions Q1 Profit Tops Expectations

reported stronger-than-expected earnings for the first quarter on Wednesday. The Schaumburg, Illinois-based company posted quarterly net income from continuing operations of $87 million, or $0.40 per share, compared to $85 million, or $0.33 per share, in the year-ago period. Excluding items, Motorola Solutions earned $0.38 per share per share from continuing operations. Its revenue slipped slightly to $1.22 billion. However, analysts were expecting a profit of $0.25 per share on revenue of $1.19 billion. The average estimate among 3 Estimize users was for earnings of $0.28 per share and revenue of $1.19 billion. Product sales rose 1 percent, while services sales slipped 2 percent in the quarter. GAAP operating margin widened to 9.7 percent of sales, versus 8.7 percent in the year-ago quarter. Motorola Solutions ended the quarter with cash and cash equivalents of $3.4 billion. During the quarter, Motorola Solutions repurchased $653 million of its common stock. "The company delivered strong double-digit profitability growth in the first quarter, driven primarily by strength in our North America business and a leaner cost structure," said Greg Brown, chairman and CEO of Motorola Solutions. "We remain committed to driving growth through innovation as well as improving operating leverage and cash flow generation." Motorola Solutions projects Q2 revenue to drop 3 percent to 5 percent versus the year-ago quarter. Motorola Solutions shares fell 3.44 percent to close at $58.59 yesterday.