Earnings Preview: Motorola Mobility Holdings, Inc (MMI)
By:NewsyStocks   Thursday, January 26, 2022 12:58 PM

Motorola Mobility Holdings is scheduled to release its fourth quarter earnings today after market close. The mobile manufacturer continues to face serious competition from the likes of Apple and Samsung, and the company recently reported that mobile sales for the quarter may come in below expectations.

Motorola Mobility is expected to post earnings of 19 cents per share. Analysts predict revenue of $3.4 billion – down nearly 1 percent year-over-year.

Earlier this month, the company issued Q4 handset sales guidance of 10.5 million units. Smartphone sales for the quarter are expected to be 5.3 million. Low-end smartphone sales for the quarter are anticipated to decline by 23 percent year-over-year. The company also advised that increased costs of IP litigation would weigh in on this quarter's results.

J.P. Morgan anticipates Motorola to face further stiff competition from other manufacturers going into 2012. It also reports that Motorola is expected to cut down on the number of devices it releases in 2012 in order to focus on a few flagship models. Analysts note that this could be a risky move given the competitive landscape.

Looking towards Q1 for the next fiscal year, J.P. Morgan expects iOS to gain more market share leading to a sequential drop in handset sales for Motorola. A majority of analysts are neutral on MMI with 29 Hold ratings among 35.

Google acquisition of Motorola has hit another snag after a European consumer watchdog group urged the EU to reconsider the deal stating it would be "unprecedented dominance in virtually all aspects of the mobile world." The deal is expected to be finalized by the first half of 2012 but no tangible evidence of a successful merger currently exists.