There’s good news for Motorola Solutions this quarter. The company has reported a better-than-expected Q3 profit on strong government spending, but the communication gear maker forecast current-quarter earnings are largely below market estimates.
The company, which dominates the two-way radio market with its land-mobile-radio systems and public-safety products, said sales in its government business rose 12 percent in the quarter, contributing to the good news.
Motorola Solutions is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc. following the spin-off of the mobile phones division into Motorola Mobility in 2011.
The company is headquartered in Schaumburg, IL, a suburb of Chicago.
Morotola Solutions says it expects Q4 earnings of 98 cents to $1.03 per share from continuing operations on sales growth of 6 percent to 7 percent. Net income rose to $206 million, or 72 cents per share, in the third quarter, from $128 million, or 38 cents per share, a year earlier, and revenue rose 3 percent to $2.20 billion.
Excluding items, the company earned 84 cents per share from continuing operations. Analysts had expected this figure to be closer to 73 cents per share.
The company raised its full-year 2012 sales growth outlook to between 6 and 6.5 percent from the 5 to 6 percent range it had forecast earlier, in an effort to better reflect revenue from Psion Plc, which it acquired earlier this month. The acquisition of the British company, which makes rugged and vehicle mounted computers for industrial use, is expected to boost Motorola's European business, Reuters is reporting today.
Edited by Braden Becker