Motorola Solutions (NYSE: MSI) boosted its full year sales outlook on Thursday after reporting a ten percent hike in third-quarter sales.
The maker of mobile phones and two-way radios said it expects its sales in the full year 2011 to rise by about seven percent, to about $8.45 billion, up from its previously guided sales growth of between 5.5 percent and six percent, for a range of $8.33 billion to $8.37 billion. In 2010, the company's posted revenues of $7.9 billion.
In the fourth quarter, Motorola said it expects sales to grow between two percent and three percent, to a range of $2.24 billion to $2.27 billion, with earnings between 78-cents per share and 83-cents per share.
Analysts polled by Bloomberg Businessweek are expecting full year revenues of $8.3 billion, and fourth quarter sales of $2.3, with fourth quarter earnings of $0.79 per share.
For the three months ended October 1, Motorola posted operating earnings of $253 million, or $0.45 per share, up 20 percent from $211 million, or $0.04 loss per share, a year ago. Adjusted for certain one-time items, earnings were $358 million, or $0.65 per share.
Revenues rose ten percent to $2.11 billion, from $1.91 billion in the same period last year. Revenue from the sale of products increased 11 percent to $1.57 billion, while revenues derived from the company's services rose eight percent to $533 million.
Analysts expected 60-cents per share in earnings, on $2.1 billion in sales.
Motorola Solutions' CEO Greg Brown said: "Our customers continue to invest in solutions that increase revenues and improve operating efficiency.
"In addition to our robust growth this quarter, we returned significant capital to shareholders. We repurchased $744 million of stock, initiated our dividend and generated very strong operating cash flow."
Government sales increased nine percent to $1.4 billion during the quarter. Motorola said it secured multi-million dollar contracts with 911 Dispatchers in Missouri, New Jersey, Cleveland, Germany, Colombia, Mexico, and Shangdong, China. It also renewed a $95 million managed services and support agreement with Airwave for its UK TETRA network.
Enterprise sales rose 13 percent to $726 million, Motorola said. Also during the quarter, it received a managed services contract with Sears, and a WLAN contract with Raley's grocery stores in the western U.S.
In New York, shares of the Schaumburg, Illinois-based company rose 2.16 percent to $46.77 as of 1:17 pm EDT. Over the last year, Motorola stock has gained nearly 42 percent.
Motorola boosts full year outlook on 10% uptick in Q3 revenues
Published: 13:41 27 Oct 2011 EDT