Motorola Solutions Inc., the maker of industrial gear such as two-way radios and bar-code scanners, fell the most in more than two years after projecting second-quarter profit and sales that trailed analyst estimates.
The stock tumbled 9.3 percent to $56.02 at the close New York time, the biggest decline since the company spun off its mobile-phone unit in January 2011. The decline cut the shares’ gain to less than 1 percent this year.
Corporate customers are still working to rebound from the economic slump, causing them to put off orders, Chief Executive Officer Greg Brown said in an interview today. That forces Motorola Solutions to be more dependent on its government customers at the federal, state and municipal level, which together account for about 70 percent of revenue.
“Enterprise is disappointing and is taking longer to recover,” Brown said. “We saw customers delay or defer some key purchases” in logistics and retail in particular, he said.
Earnings per share from continuing operations will be 66 cents a share to 71 cents a share in the second quarter, the Schaumburg, Illinois-based company said today in a statement. Analysts projected 85 cents a share, the average of 15 estimates compiled by Bloomberg.
Sales this quarter will be unchanged to a decline of 2 percent. Analysts projected sales to rise 5 percent to $2.25 billion, on average.
Business demand from outside the U.S. is problematic, Brown said. “Europe continues to muddle along. China and Japan have softened modestly,” he said. “All those ingredients make for a modest recovery.”
Motorola Solutions today also reported first-quarter earnings of 66 cents a share, excluding some items, missing the 67 cents predicted by analysts on average. Revenue rose 1 percent to $1.97 billion. That fell short of the $2.05 billion estimate, according to data compiled by Bloomberg.