Motorola Solutions, the Schaumburg-based maker of walkie-talkies and radio systems, reported third-quarter earnings Wednesday morning, beating expectations for revenue and earnings per share.
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Sales and profits were both down year over year. The company cited “currency headwinds” and a “mixed global economic environment” during the quarter. In October, the company introduced a new law enforcement-focused body camera to compete with Taser.
In early Wednesday trading, shares were down about 8.5 percent.
Here’s how the quarter played out, and some of what’s to come:
Net income: Third-quarter income was $115 million, down 22 percent from $147 million during the third quarter last year.
Earnings per share: The company posted third-quarter adjusted earnings per share of 82 cents, up from 62 cents from the same quarter last year, and beating analyst expectations of 73 cents.
Revenue: Revenue was $1.42 billion, down 1 percent from a year ago but beating analyst expectations of $1.41 billion.
The “why”: “Our business showed resilience in the third quarter despite a mixed global economic environment and significant currency headwinds,” said Greg Brown, chairman and CEO of Motorola Solutions, in a statement. “We delivered a strong quarter of 32 percent earnings per share growth, additional cost reductions and more than $2 billion of capital return. We believe we are well positioned for significant growth in operating earnings and free cash flow per share.”
In October 2014, the company sold its enterprise business to Zebra Technologies for $3.45 billion.
News from the quarter: A month after Motorola Solutions announced it was relocating its corporate headquarters and 800 jobs from Schaumburg to Chicago, the Tribune reported the company was laying off 6 percent of its local workforce. The company also introduced a combination body camera, radio speaker and microphone for law enforcement amid growing demands for video evidence during encounters between police and civilians.
2015 fourth-quarter outlook: The company said it expects revenue to decline 6 to 8 percent compared with the fourth quarter of 2014, assuming a $65 million unfavorable currency impact. Brown said “increased softness and economic uncertainty” in Latin America and Eastern Europe were tempering the company’s views for the quarter ahead.
What’s next: In the earnings call, Brown said the company is “seeing progress in investments in innovation.” The company also said it has “growing product revenue well ahead of expectations” with the APX 8000 radio.
Stock price: Motorola Solutions shares were trading early Wednesday at $65.15, down about 8.5 percent from Tuesday’s close.
Email: [email protected] * Twitter: @megancgraham
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