Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

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Wednesday, July 19, 2006

Motorola Scored an A on Earnings

Motorola (MOT) is up 2% after-hours after posting better than expected earnings. MOT posted EPS at $0.34 vs $0.31e and revenues $10.88 Billion vs. $10.27 billion. No one was expecting this much of a beat on revenues. It also beat shipments with 51.9M units, well above expectations. MOT also guided higher to revenues of $10.9 billion to $11.1 billion versus consensus of $10.5 billion. The company slammed and jammed estimates and is being rewarded, but they still need to round out their product offering with more telecom equipment and related products to fend off competition from Cisco after the SFA buyout, cell phone from Sony/Ericsson, and after the tie-up of Nokia and Siemens. Despite my "Must Do" attitude, this was a great job on their part and they are being rewarded for it.

Jon C. Ogg
July 19, 2006

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