Ahead of the Bell: Motorola Declines
12.07.2007 11:52
Computers
- Source: Forbes
Shares of Motorola Inc. fell in Thursday's premarket trading session, after the cell phone maker forecast lower second-quarter sales and an operating loss because of soft demand for handsets. Shares gave up 30 cents to $17.65, following a $17.95 finish in regular trading. Motorola (nyse: MOT - news - people ) forecast a loss from continuing operations of 2 cents to 4 cents per share for the second quarter, including charges of 3 cents to 4 cents per share related to job cuts and other items. Motorola also lowered its quarterly sales outlook to between $8.6 billion and $8.7 billion, from a prior target of around $9.4 billion, and said its cell phone unit will be unable to turn a profit until at least 2008. Jefferies analyst Bill Choi was bearish on Motorola's chances to turn around its operations. "We believe it could take a year to substantially improve the company's handset portfolio," Choi wrote in a client note. Choi has a "Hold" rating on the shares, as Motorola's competition continues getting stronger from rivals like Samsung, Research in Motion Ltd. (nasdaq: RIMM - news - people ), Apple Inc. (nasdaq: AAPL - news - people ), and Nokia Corp. (nyse: NOK - news - people ) - the No. 1 handset maker. "Motorola doesn't have a competitive handset portfolio and it could take at least one year to launch new innovative phones," Choi wrote. ________________________ Questions or comments about this story should be directed to Betsy Vereckey of The Associated Press at 212-621-7190. Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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