Motorola Solutions Inc.'s (MSI) first-quarter profit soared amid
an income tax benefit and earnings from discontinued operations, as
the company also reported spending from governments and large
businesses grew.
Looking ahead, the company expects growth across both the
government and enterprise segment, saying it expected to report a
second-quarter profit from continuing operations of 46 cents to 51
cents a share. Analysts polled by Thomson Reuters expected a profit
of 50 cents.
The provider of public safety radios, handheld scanners and
telecommunications network gear was created earlier this year in
the split of Motorola Inc., which separated the higher profile
mobile devices and TV set-top box operations.
Motorola Solutions reported a profit of $497 million, of $1.44 a
share, up from $69 million, or 21 cents a share, a year earlier.
Excluding stock-based compensation and other impacts, adjusted
earnings from continuing operations rose to 54 cents from 33 cents.
Net sales grew 8.3% to $1.88 billion.
In January, the company had projected earnings from continuing
operations of 29 cents to 34 cents on sales growth of 3% to 4%.
Gross margin grew to 50% from 49%.
Sales of products, which makes up a bulk of the top line,
increased 10% while services revenue climbed 2.4%. Government sales
were up 5% while the enterprise business reported a 14%
increase.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com