Communications equipment manufacturer Motorola Solutions Inc (MSI) reported early on Wednesday that its second quarter earnings rose 48% year-over-year, despite a 2% decline in sales. While adjusted earnings beat estimates, the company’s revenues came up short of views.
The Schaumburg, Illinois-based company posted second quarter earnings of $262 million, or 94 cents per share, up from $177 million, or 60 cents per share, reported in the same quarter in 2012.
On an adjusted basis, Motorola Solutions’ second quarter earnings came in at $1.12 per share. According to analysts polled by Thomson Reuters, the company was expected to earn $1.04 per share.
Despite the rise in profits in the second quarter, the company’s revenues dipped 2%, coming in at $2.10 billion. Analysts were expecting the company to see $2.13 billion in sales.
The company noted that Government sales were down 1% year-over-year, while Enterprise sales decline 5%.
Looking toward the third quarter, the company said it expects revenues to be flat to down 3%; adjusted earnings from continuing operations are expected to be between 97 cents and $1.02 per share. At $1.25 per share, analysts expect a much larger EPS from the company in the third quarter
Motorola Solutions shares were down $2.48, or 4.13%, during pre-market trading on Wednesday. The stock is up 7.72% year-to-date.
The Bottom Line
Shares of Motorola Solutions (MSI) offer a dividend yield of 1.73% based on last night’s closing price of $59.98 and the company’s annualized dividend payout of $1.04 per share.
Motorola Solutions Inc (MSI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.