Motorola Stock Plummets On Huge 4Q Loss

Illustration for article titled Motorola Stock Plummets On Huge 4Q Loss

When your company earnings nose dive 84% in the fourth quarter and you issue a warning that the recovery will take longer than expected, It is not all that surprising that the reaction on Wall Street will be swift and brutal.

Advertisement

To put that into perspective, Motorola's net income amounted to 4 cents per share, which was down from $623 million, or 25 cents per share a year earlier. Sales also fell from $11.79 billion to $9.65 billion. If that wasn't enough, Motorola's global market share is down 13 percent from 23 percent at the end of 2006—and it hasn't bottomed out yet.

As mentioned back in October, the most serious losses have come from their handset division. Sales have sunk 38 percent to $4.8 billion during the quarter, with a total operating loss of $388 million. The total damage tops out at $4.9 million compared to a $3.67 billion profit in 2006. Not to worry though, Motrorola execs said that innovative new devices would help turn things around. Duh! During morning trading Motorola shares plunged $1.96, or 15.9 percent, to a nearly four-year low of $10.36. [Brietbart via Valleywag]

Advertisement

Share This Story

Get our newsletter

DISCUSSION

FuzzysFriedChicken
FuzzysFriedChicken

"Motorola stock plummets on a Huge Q4 Loss"

Wow a headline which is completely wrong! Motorola didn't lose money this quarter, they made 84% less than they did Q4 last year. They got nailed due to the fact they warned they were going to lose money on the next quarterly report.