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What: Shares of Motorola Solutions (NYSE:MSI) plunged today by as much as 14% after the company announced earnings with soft guidance.
So what: Revenue in the first quarter totaled $1.97 billion, modestly lower than consensus estimates. Adjusted earnings per share were right on target at $0.66. CEO Greg Brown said it was a challenging enterprise market, while government sales were up 3%. Enterprise sales were down 4%.
Now what: Guidance left a lot to be desired, with second-quarter revenue expected to be flat to down 2% year over year. Adjusted earnings per share is forecast in the range of $0.66 to $0.71, which is well below the $0.86 adjusted profit that the Street was expecting. Full-year revenue is expected to grow 3% to 4% and generated a non-GAAP operating margin of 18%.
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