Motorola Mobility Holdings (NYSE:MMI) shares are getting hit hard today, even though they had a good earnings quarter and gave guidance in line with expectations. The concern is the effect of Apple's iPhone (Nasdaq:AAPL) release on the Verizon (NYSE:VZ) network, and the resultant loss in unit sales.
Susquehanna said, "we estimate about 2 million Android units for MMI in 4QCY10 and model a 40% Q/Q decline to 1.2 million units in 1QCY11 to account for the launch of the iPhone. We believe consumer interest in 4G , and the launch of the Xoom tablet could help offset the impact from the iPhone."
They lowered their full year 2011 and full year 2012 EPS estimates to from $1.19 and $1.93 to $1.09 and $1.91.
Susquehanna is raising their price target on the company to $37 from $35.
Susquehanna reiterates their "Positive' rating on Motorola Mobility Holdings (MMI), which was trading at $30.79, falling $4.04, or 11.60 percent, as of 1:24 PM EST.
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