So Motorola (MOT) reported earnings today, and seeing as how they preannounced them last week they came in right on target. The press release was full of gung-ho corporate-speak about how they were going to focus on profitability and cash flow, but what really got my head spinning was next quarter’s guidance:
The company’s outlook for earnings per share from continuing operations in the third quarter is flat to slightly up compared to second quarter earnings from continuing operations excluding highlighted items. This outlook excludes any reorganization of business charges associated with the company’s operating expense reduction initiatives, as well as any other items of the variety highlighted by the company in its quarterly earnings releases. While the company does not expect the Mobile Devices business to be profitable for the full year, it does expect its financial results to improve in the second half of the year.
Say what? It sounds like they used Babel Fish to translate it into Japanese and then back into English before printing it. I’m having it sent to the embassy for translation, but I think it means if you ignore anything management asks you to ignore they should earn $0.02 or a bit more next quarter, compared to analyst estimates of $0.04.
Maybe there was a reason for its inscrutability.
MOT 1-yr chart: