Motorola Solutions profit beats estimates on government spending
US-MOTOROLASOLUTIONS-RESULTS:Motorola Solutions profit beats estimates on government spending
(Reuters) - Communications gear maker Motorola Solutions Inc reported better-than-expected fourth-quarter profit, boosted by higher government spending on public safety, but forecast current quarter revenue below analysts' estimates.
The company expects first-quarter revenue to increase 4 percent to 5 percent from a year earlier. This means a revenue of between $2.03 billion and $2.05 billion.
It forecast earnings of between 62 cents and 67 cents per share from continuing operations in the first quarter of 2013.
Analysts on average are expecting a profit of 67 cents per share on revenue of $2.07 billion, according to Thomson Reuters I/B/E/S.
Motorola Solutions benefited over the past year as two-way radio users were required by the Federal Communications Commission to upgrade their devices for a switch to narrow bands of 12.5 kHz from wideband channels of 25 kHz by January 1, 2013.
The company dominates the two-way radio market with its land-mobile-radio systems and public-safety products.
"In 2013, we expect the end of narrowbanding to result in government revenue growth slowing down to the mid single digits ... from the strong growth seen last year," Sanford C. Bernstein analyst Pierre Ferragu wrote in a pre-earnings note.
Net income from continuing operations rose to $336 million, or $1.18 per share, in the fourth quarter, from $177 million, or 54 cents per share, a year earlier.
Excluding items, the company earned $1.10 per share from continuing operations, above analysts' expectations of $1.02.
Revenue rose 6 percent to $2.44 billion, in-line with analysts' estimates of $2.45 billion.
Motorola Solutions is not related to Motorola Mobility, the cellphone maker bought by Google Inc for $12.5 billion in 2011.
Shares of the Schaumburg, Illinois-based company were up marginally at $59 in premarket trading on Wednesday. They closed at $58.29 on the New York Stock Exchange on Tuesday.
(Reporting by Neha Alawadhi in Bangalore; Editing by Sriraj Kalluvila)