Motorola drops 20 percent on poor earnings
Motorola stock has fallen to a four-year low after a bad earnings report yesterday. The company reported earnings of 4 cents a share on $9.65 billion in sales. The profit numbers were an 84 percent drop year over year. Additionally, Motorola's market share in mobile handsets continues to decline, down to 13 percent globally. For fiscal 2007, Motorola lost $49 million compared to a $3.67 billion profit in 2006. Ouch. The largest drop came from the handset division, which reported an operating loss of $388 million. Motorola execs say a new line of "innovative" cell phone will jumpstart earnings. Unless MOT comes up with another hit phone, like the RAZR, we find that hard to believe.