Motorola Solutions Inc. (MSI:US), the maker of two-way radios and other equipment, dropped the most in almost six months after its first-quarter forecast missed analysts’ estimates.
Excluding some items, earnings will be 46 cents to 52 cents a share, the Schaumburg, Illinois-based company said today in a statement. Analysts had estimated 77 cents on average, according to data compiled by Bloomberg. The company forecast a sales decline of 4 percent to 6 percent from the year-earlier period, compared with a projected 2 percent gain.
The forecast raised concerns about Motorola Solutions’ growth strategy three years after its split from Motorola Mobility -- the mobile-phone maker that is now owned by Google Inc. (GOOG:US) The Solutions business has struggled to maintain growth since the separation, though last quarter’s results topped estimates.
The stock fell 3.9 percent to $64.51 at the close in New York, the biggest one-day drop since July 24. The shares rose 21 percent last year, trailing the almost 30 percent gain of the Standard & Poor’s 500 Index.
To contact the reporter on this story: Nick Turner in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Nick Turner at email@example.com