SCHAUMBURG, Ill. (AP) — Motorola Solutions, the portion of the former Motorola Inc. that sells communications equipment to government and corporate customers, reported third-quarter results Thursday that beat analyst expectations as revenue rose in its two main businesses.
Motorola Solutions earned $128 million, or 38 cents per share in the quarter. This compares with net income of $110 million, or 33 cents per share, in the same quarter a year earlier.
Earnings from continuing operations totaled $152 million, or 45 cents per share, in the quarter that ended Oct. 1. That is more than the company’s overall net income because it had a net loss of $24 million from discontinued operations.
When excluding stock-based compensation and one-time items, Motorola Solutions earned 65 cents from continuing operations — 5 cents more than what analysts polled by FactSet were expecting, on average.
Revenue rose 10 percent year over year to $2.1 billion, meeting analysts’ expectations. The company said its government sales rose 9 percent to $1.4 billion, while enterprise sales increased 13 percent to $726 million.
Motorola Solutions increased its revenue outlook for the full year, predicting revenue will now grow 7 percent. Given this, it expects fourth-quarter sales to grow 7 percent compared with the third quarter — a projection for nearly $2.3 billion in revenue for the period. It also expects net income from continuing operations, excluding items, of 78 to 83 cents per share.
Analysts are hoping for $2.3 billion in revenue and adjusted earnings of 79 cents per share.
Shares of Motorola Solutions Inc. rose $1.21, or 2.6 percent, to $46.99 in afternoon trading.
Motorola Solutions split from cellphone and cable set-top box maker Motorola Mobility Holdings Inc. in January.