Motorola Mobility disappoints on smartphones

Libertyville-based Motorola Mobility Holdings, the maker of cellphones and cable set-top boxes that split off from the rest of Motorola in January, posted a loss for the latest quarter and forecast earnings for the current quarter well below analyst expectations.

Strong sales of regular phones in China and Latin America helped Motorola exceeded Wall Street's revenue forecast. But smartphones are the linchpin of the company's turnaround strategy.

Motorola Mobility shipped 4.4 million smartphones in the quarter, an increase from 2.7 million a year earlier. Analysts were looking for a higher number to prove Motorola can hold its own against bigger competitors like Apple Inc. and Samsung Electronics.

The company's shares fell $1.21, or 5.3 percent, to $21.70 in extended trading Thursday after the company reported its quarterly results. That's approaching $20.77, their lowest level since the company split from the old Motorola Inc. Jan. 4.

Motorola Mobility posted a loss of $56 million, or 19 cents per share, for April through June. That compares with a profit of $80 million a year earlier.

Excluding the costs of stock-based compensation and amortization of intangible assets, Motorola turned a profit of 9 cents per share, 2 cents more than analysts expected, according to FactSet.

Revenue was $3.3 billion, up 28 percent from a year ago. That beat analyst forecasts for $3.14 billion.

Motorola's overall phone shipments were 11 million, representing only the second year-over-year increase since Motorola's fortunes started a precipitous slide in 2006.

For the third quarter, Motorola expects adjusted earnings to range from breakeven to 10 cents per share. Analysts were looking for 27 cents per share.

For the full year, Motorola expects earnings of 48 cents to 60 cents per share, implying fourth-quarter earnings of 37 cents per share to 59 cents per share. That straddles the average analyst estimate of 47 cents per share.