Telecom Earnings Preview

Motorola warns of a loss in its handset business, but equipment vendors and service providers still should show healthy growth

Telecom companies, both service providers and equipment vendors, are expected to report relatively strong earnings gains in the second quarter, even though Motorola (MOT; $18; ranked hold by S&P) warned last week that poor sales of its wireless handsets in Europe and Asia will result in a loss for the period. The company also said it expects its mobile handset division, which accounts for about 60% of the company's sales, to report a loss in 2007.

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