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 Motorolasuch 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.