Communications equipment sector-related exchange traded fund (ETF) dips after Motorola Mobility Holdings (NYSE: MMI) shares take a beating on news of its second quarter figures.
iShares S&P North American Technology-Multimedia Networking (NYSEArca: IGN) was down 1.12% in late trading.
Motorola shares were down as much as 7.9% during early morning trading after posting losses of $56 million, or 19 cents per share, during the second quarter, according to the Associated Press. Company shares has since pared some losses and was down 1.96%.
The company projects adjusted earnings for the third quarter in the range of break-even to 10 cents a share, where as analysts were expecting 27 cents per share.
According to Sanford Bernstein analyst Pierre Ferragu, Motorola is losing market share in the U.S. markets, which is troubling since the U.S. is a trendsetter for the wireless market.
“We recommend investors staying away from this name,” Ferragu writes in a morning research note. [S&P Negative on Communication Equipment ETF.]
iShares S&P North American Technology-Multimedia Networking
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Max Chen contributed to this article.