Motorola Earnings Preview: How’s That mobile phone Spinoff Going? (MOT)


Motorola (MOT) already warned that it had a terrible Q4: Last month, the company said Christmas quarter mobile phone shipments dropped 54% year-over-year, and that revenue would miss consensus by as much as $500 million.

So when the company discusses its earnings Tuesday morning, we’ll be listening closest for what’s next. This includes:

  • How Motorola’s mobile phone spinoff plans are going. Last October, Motorola said its spinoff — originally scheduled for this summer — would be delayed indefinitely.
  • Whether the company is really demoting Microsoft’s (MSFT) Windows Mobile and focusing on Google’s (GOOG) Android platform.
  • How the rest of Motorola’s business — its network infrastructure and set-top box units — is doing.
  • What, if any, guidance the company will give for 2009.

Analysts expect Motorola to report $0.00 of adjusted EPS on $7.15 billion of revenue — down from their $7.5 billion revenue consensus from January. Motorola said in its pre-announcement that revenue would fall between $7.0-7.2 billion.

For the full year, the Street expects Motorola to earn $0.01 on $25.8 billion of revenue — down 14.5% year-over-year.

See Also:
Motorola Demotes Windows Mobile, Fires Staff
Dell Testing Both Microsoft, Google-Based Phones
Motorola Blows Q4, Firing 4,000 More