Motorola Solutions posts lower 1Q net income
Motorola Solutions Inc., which sells communications equipment to government and corporate customers, said Wednesday that its first-quarter net income declined from a year ago, when the company recorded a large tax-related gain.
Revenue grew thanks to strong demand from the company's government customers.
Motorola Solutions Inc. earned $157 million, or 49 cents per share, in the January-March period. That's down from earnings of $497 million, or $1.44 per share, a year earlier. Last year's quarter included a tax benefit of $189 million.
Adjusted earnings were 59 cents per share in the latest quarter, up from 54 cents per share a year earlier.
Revenue increased 7 percent to $1.96 billion from $1.83 billion.
Analysts, on average, were expecting earnings of 55 cents per share on revenue of $1.93 billion, according to a poll by FactSet.
The company said sales in its government segment grew 11 percent to $1.3 billion, with demand strong in all geographic regions. Sales in its corporate segment fell 2 percent to $655 million.
For the current quarter, which ends in June, Motorola expects adjusted earnings of 65 cents to 70 cents per share. It expects revenue to grow about 6 percent from $2.06 billion last year.
Analysts are expecting earnings of 69 cents per share on revenue of $2.1 billion, which would be an increase of 2 percent.
Motorola Solutions is half of the former Motorola Inc., which split into two companies in January 2011. Google Inc. is buying the other business, Motorola Mobility Holdings Inc., for $12.5 billion. Motorola Mobility is the consumer-facing half of Motorola, best known for the mobile phones it makes.