(MOT) - Motorola, Inc. - return on equity crushes that of the industry average-19% compared to 9%

Motorola, Inc. (MOT) exceeded analyst's earnings expectations in 11 out of the past 12 quarters. The company recently posted record quarterly revenues, fueled by its mobile devices business segment. MOT shipped its 50 millionth Razr since the handset was introduced, and unveiled two new models at its annual analysts' meeting. The company has a current dividend yield of 0.93% and a five-year average dividend yield of 1.1%. Full Analysis Motorola, Inc. is a communications company that designs, manufactures, markets and sells mobility products worldwide. The company operates in four segments: mobile devices, government and enterprise mobility solutions, networks and connected home solutions. Investors have grown accustomed to MOT exceeding analysts' earnings expectations, having done so in 11 out of the past 12 quarters (in one quarter the company matched the Street's estimate). The company's most recent surprise occurred on Jul 19, 2006, when MOT posted second-quarter profits that came in at a penny better than what analysts were expecting. Revenues of $10.9 billion were not only up 29.8% when compared to the $8.4 billion achieved in the prior-year period, but also marked a new record. For the first six months of the year, profits came in at $2.1 billion, up from $1.6 billion. Revenues amounted to $20.5 billion-a 26.5% jump from the $16.2 billion in the first half of 2005. Looking ahead to the third quarter, MOT projects sales between $10.9 billion and $11.1 billion, which would represent an increase of 20% to 23% versus the prior-year quarter. The growth is expected to be fueled by its mobile devices business segment. MOT shipped its 50 millionth Razr since the handset was introduced to the world in the fourth quarter of 2004. Furthermore, at the company's annual analysts' meeting, two new Razr phones were unveiled-the Krzr and the Rizr. The Krzr should hit stores in the third quarter, with the Rizr available in the fourth quarter-just in time for the holidays. MOT shipped 51.9 million mobile handsets, up 53% compared to the second quarter of 2005. The company successfully launched 11 new handsets in several different markets. With retail stores established in different parts of China, the company should experience further growth in the second half of 2006. The company was able to generate $500 million of operating cash flow during the second quarter. This marked the 22nd straight quarter in which operating cash flow was positive, and has enabled the company to offer a current dividend yield of 0.93%. MOT's five-year average dividend yield is 1.1%. The company will also repurchase $1.2 billion of its common shares two years ahead of schedule, with $4.5 billion to be bought back over the next 36 months. MOT's return on equity crushes that of the industry average-19% compared to 9%. MOT is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 22.0% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home