Tuesday, April 5, 2011

Motorola Mobility (MMI) EPS, Revenue Outlook Cut by Pacific Crest

Saying Xoom tablet and Atrix smartphones sales aren't meeting the projections of Motorola Mobility (NYSE:MMI) Pacific Crest analyst James Faucette said the company will be under pressure if it doesn't “refresh its product portfolio for the second half of 2011.” Consequently he lowered his EPS and revenue estimates on the company for 2011 and 2012.

Faucette slahsed his 2011 revenue estimate from $13.7 billion to $12.25 billion, while cutting his EPS outlook from 96 cents a shaer to 64 cents a share. For 2012 the outlook is even worse, with revenue cut from $15.34 billion to $13.62 billion and EPS from $1.73 a share to $1.10 a share.

Faucette said, “Based on our checks, we believe overall sell-through trends for of the Xoom and Atrix have been disappointing. In particular, we believe Atrix’s lower-than-forecast volumes are a result of the $49 iPhone 3GS and the HTC Inspire, which kept Atrix sales well below forecast in spite of the marketing focus put on the Atrix by AT&T.”

Motorola Mobility was trading at $23.67, gaining $0.04, or 0.17 percent, as of 12:24 PM EDT. Faucette maintains a "Sector Perform" on the company.

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