Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, October 30, 2009

Article Excerpt

MOTOROLA INC., $8.57, New York symbol MOT, rose 5% this week after it reported better-than-expected earnings. The company also launched two new smartphones. In the three months ended October 3, 2009, Motorola earned $12 million, or $0.01 a share. If you exclude unusual items, it would have earned $0.02 a share. Analysts had expected the company to break even. In the year-earlier quarter, Motorola lost $397 million, or $0.18 a share. Among the unusual items the company recognized in the quarter were costs related to its plan to break itself into two publicly traded companies — the mobile-devices business, and the wireless-infrastructure and home-equipment operations. Motorola lowered its costs during the quarter, including an 8% cut in its workforce and the closure of some plants; these were the main reasons for the improved earnings. Motorola feels that these reductions will save it $1.9 billion in 2009. That’s up $100 million from its previous estimate. Sales fell 27.1%, to $5.5 billion from $7.5…