Motorola Solutions Inc. (MSI), 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) 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 email@example.com
To contact the editor responsible for this story: Nick Turner at firstname.lastname@example.org