Motorola gets a big lift from high Razr demand

Posted Jul 19th 2006 5:58PM by Michael Fowlkes
Filed under: Earnings Reports, Good news, Motorola (MOT)

Motorola (MOT) has shot up in after hour trading after blowing away Wall Street estimates. The stock is currently trading up 8.4% to $20.87 after the world's second-largest maker of cellular phones posted a 48% jump in second-quarter earnings.

For the second quarter, income came in at $1.38 billion, or 55 cents per share (including a 21 cent benefit from unusual items such as tax benefits and a litigation settlement.). Analysts were looking for the company to report 31 cents.

The company said that during the quarter it shipped 51.9 million cell phones, mostly on high demand for its popular Razr line of phones. "It's the same old story for them -- Razr, Razr, Razr, or at least the Razr family," Morningstar analyst John Slack said.

Motorola now boasts a 22% share of the global market place, up 4.3% year over year.

While this quarter was all about the Razr next quarter could look even brighter for the company after a very successful launch of the Q smart phone. Motorola views that Q smart phone as the new alternative to the Blackberry and the company is very happy with the initial demand it has seen for the new phone line having shipped 150,000 units in the first 30 days.

But make no mistake about it, these days it's all about the Razr. According to Motorola Chief Executive Ed Zander, "We've just begun with the Razr."

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