Motorola shares fall after earnings miss

But analysts say current quarter looks promising, even though third-quarter numbers fell short.

Shares of Motorola, the world's No. 2 cell phone maker, fell 4.8 percent on Wednesday, a day after the company reported revenue missed Wall Street estimates and its own target for handset shipments.

The stock dropped $1.19 to $23.66 on the New York Stock Exchange. However the decline was not as sharp as the fall of 8 percent in post-market trade after the report Tuesday night.

While third-quarter sales disappointed, analysts said current-quarter prospects looked good as Motorola ramps up sales of new phones such as the , its flagship phone.

"Krzr, Rizr and 3G Razr variants are arriving just in time to refresh the Motorola line-up and we see handset momentum (and average selling prices) returning on those launches," Cowen analyst Matthew Hoffman said in a research note.

Some of the phones began to ship in the third quarter.

Motorola said Tuesday its third-quarter revenues rose 17 percent to $10.6 billion, but fell short of analyst estimates and its own forecasts.

Handset sales fell 1.3 million short of its own 55 million target in the quarter.

The company forecast fourth-quarter sales of $11.8 billion to $12.1 billion, with the mid-point below the average analyst estimate of $12.05 billion, according to Reuters Estimates.

Some analysts said the guidance could be conservative.

Motorola said profit fell 45 percent to $968 million, or 39 cents, from a year ago, when it posted 39 cents of unusual gains.

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