On April 18, communications products maker Motorola
- Revenues were down 1.8% due to a 15% decline in mobile devices sales. Chairman and CEO Ed Zander called that "unacceptable."
- Management said it expects second-quarter sales to be flat compared with the first quarter, and EPS to be $0.02 to $0.03.
- Our Motley Fool CAPS community gives the stock a sub-par two-star rating. The bearish sentiment is summed up by bsamim: "I don't care what [Carl] Icahn or who else owns this stock ... how can you have a product like a Razr that everyone and their sister wants just because it matches their nail polish or the color pink, and still find a way to screw up your margins ... ?"
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$9,433 |
$9,608 |
(1.8%) |
|
Net Profit |
($218) |
$656 |
N/A |
|
EPS |
($0.09) |
$0.26 |
N/A |
|
Diluted Shares |
2,372.3 |
2,553.6 |
(7.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
26.0% |
30.5% |
(4.5) |
|
Operating Margin |
(3.9%) |
8.8% |
(12.7) |
|
Net Margin |
(2.3%) |
6.8% |
(9.1) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest.* |
$8,955 |
$14,646 |
(38.9%) |
|
Accounts Rec. |
$6,811 |
$5,858 |
16.3% |
|
Inventory |
$3,301 |
$2,764 |
19.4% |
*Short-term investments include Sigma Funds
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$4,010 |
$4,430 |
(9.5%) |
|
Long-Term Debt |
$2,596 |
$3,774 |
(31.2%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Can you believe a company of this size and history still doesn't provide a cash flow statement with earnings?
Free cash flow is a Fool's best friend.
Related Foolishness:
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
