UPDATE: Motorola Solutions Q3 Profit Tops Estimates

Motorola Solutions (NYSE: MSI) reported better-than-expected profit for the third quarter and raised its buyback plan by $5 billion. The Schaumburg, Illinois-based company posted quarterly earnings of $147 million, or $0.59 per share, compared to $307 million, or $1.16 per share, in the year-ago period. Its earnings from continuing operations declined to $0.62 per share from $1.08 per share. Its sales shrank 5.3% to $1.44 billion. Motorola Solutions had expected earnings from continuing operations of $0.35 to $0.41 per share on revenue drop of 7% to 9%. However, analysts were expecting earnings of $0.41 per share on revenue of $1.39 billion.Product sales fell 7.7% to $921 million, while service sales dropped 1% to $515 million.Motorola Solutions used $115 million in operating cash from continuing operations during the third quarter.“We are encouraged by third-quarter revenues and earnings as the business continues to show signs of improvement,” said Greg Brown, chairman and CEO, Motorola Solutions. “Additionally, our actions to simplify our operations and remove costs continue to yield sustainable operating expense reductions, which will further position us for long-term success.”For the current quarter, Motorola Solutions projects earnings from continuing operations of $1.13 to $1.19 per share, on revenue decline of 1% to 3%. Analysts expected earnings of $1.19 per share on revenue drop of 26%.Motorola Solutions shares rose 0.51% to $65.01 in pre-market trading.