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What: Shares of Motorola Solutions plunged today by as much as 10% after the company reported earnings and provided lackluster guidance.
So what: Revenue in the second quarter totaled $2.1 billion, and adjusted earnings per share were $1.12. That bottom-line result was ahead of the $1.04 consensus estimate, but didn't make up for a gloomy forecast, as the enterprise business continues to be challenging.
Now what: The government sector is holding up well, but the same can't be said for the enterprise business, which saw organic sales (excluding the Psion acquisition) fall 12% last quarter. Next quarter's revenue should be flat to down 3% relative to the year-ago quarter, and adjusted earnings per share are expected to be in the range of $0.97 to $1.02. Investors were expecting the company to post $1.25 per share in adjusted profit.
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The article Why Motorola Solutions Shares Plunged originally appeared on Fool.com.
Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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