Revenue was $11.8 billion, up 17 percent from $10 billion a year ago and slightly above Wall Street's $11.7 billion estimate.
The company said it expects sales between $10.4 billion and $10.6 billion in the first quarter, in line with analysts' forecast of $10.5 billion. For all of 2007, Motorola predicts revenues between $46 billion and $49 billion.
During a conference call with analysts, Motorola CFO David Devonshire said 2007's earnings would be flat to slightly above 2006 profits of $1.13 a share.
CEO Ed Zander said a variety of factors had resulted in a disappointing quarter despite strong sales. He said Motorola is sticking with its strategy, which many analysts had said was in need of overhaul following the company's Jan. 5 profit warning.
Zander also dismissed suggestions that the trend-setting Razr phone, which turned around the company's fortunes two years ago, is running out of momentum.
"It's funny, I keep reading about Razrs being tired," he told analysts on a conference call. "We sold more Razrs in quarter four than in any quarter we ever had. We now have sold over 75 million Razrs worldwide."
Zander said newer products in the Razr family also are selling strongly, although not as well as some forecasts.
Asked why Razr prices had been cut if it is still in such strong demand, he said Razr makes money and there are ways to cut costs even further. He said he would provide more detail later Friday at a hastily scheduled analysts meeting in New York.
The company, which is No. 2 in handsets behind Nokia, said its world market share grew nearly 1% in the quarter to 23.3%.
Operating earnings from the mobile devices division, the company's largest business, fell 49% to $341 million despite a 19% increase in sales to $7.8 billion. The company shipped a record 65.7 million handsets in the quarter, up 47% from a year earlier.
For the full year, net earnings were $3.67 billion, or $1.46 per share, down 20% from $4.58 billion, or $1.81 per share, in 2005. Sales rose 22% to $42.9 billion from $35.3 billion.