- Third Quarter Forecast: Motorola Solutions expects adjusted EPS between $3.32 and $3.37, beating the estimate of $3.31.
- Revenue Growth: The company sees third-quarter revenue increasing by 7% to 8% year-over-year.
- Second Quarter Results:
- Adjusted EPS of $3.24 vs. $2.65 from the previous year, above the estimate of $3.01.
- Net sales reached $2.63 billion, an increase of 9.4% year-over-year, surpassing the estimate of $2.59 billion.
- Products and Systems Integration Segment sales were $1.66 billion, up 15% year-over-year, beating the $1.58 billion estimate.
- Software and Services Segment sales were $970 million, a slight increase of 0.4% year-over-year, but below the $1 billion estimate.
- Gross margin improved to 51% from 49.5% year-over-year, exceeding the 50.1% estimate.
- Adjusted operating income was $758 million, an 18% increase year-over-year, and above the estimate of $713.7 million.
- Adjusted operating margin reached 28.8% versus 26.7% year-over-year, topping the 27.5% estimate.
- Free cash flow was $112 million, up from $40 million year-over-year but below the $364 million estimate.
- Comments on Future Outlook:
- For the third quarter of 2024, the company expects revenue to grow between 7% and 8% compared to the same period in 2023.
- For the full year 2024, the company raised its revenue growth expectation to approximately 8%, up from prior guidance of about 7%.
- Full-year non-GAAP EPS is now expected to be between $13.22 and $13.30, increased from the previous range of $12.98 to $13.08 per share.
- Positive Business Momentum: The company attributes the updated forecasts to a strong ending backlog and business momentum entering the second half of the year.
- Analyst Ratings: There are currently 9 buys, 3 holds, and 1 sell ratings on the stock.
Motorola Solutions on Smartkarma
Analyst coverage of Motorola Solutions on Smartkarma highlights positive sentiments from Baptista Research analysts. In their report titled “Motorola Solutions Inc.: What Is The Implication of Cloud Technology Adoption? – Major Drivers,” they commend Motorola Solutions for its robust financial performance in the first quarter of 2024. The company experienced a 10% revenue growth, a significant 27% increase in earnings per share, expanded operating margin, and a record first quarter operating cash flow of $382 million. This growth was driven by various segments, signaling a strong outlook for the company.
In another report by Baptista Research, “Motorola Solutions: Enhanced Safety Portfolio With The Acquisition of IPVideo & 5 Other Drivers Of The Company’s Stock In 2024! – Financial Forecasts,” analysts laud the company for delivering impressive 2023 fourth quarter earnings. Gregory Brown, Chairman and CEO, highlighted the highest ever revenue in both segments and all three technologies, showcasing strong demand for their Security and Safety Solutions. The report also mentioned that revenue for the quarter grew 5% with growth across all segments, regions, and technologies, indicating a positive trajectory for Motorola Solutions.
A look at Motorola Solutions Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Motorola Solutions, Inc. is positioned for a positive long-term outlook based on the Smartkarma Smart Scores. With a Growth score of 4 and Momentum score of 4, the company shows strong potential for expansion and upward movement in the market. This indicates that Motorola Solutions is likely to experience growth and continue its positive trajectory over the long term.
Although the Value, Dividend, and Resilience scores are moderate, the higher scores in Growth and Momentum suggest that investors may find Motorola Solutions an attractive prospect for long-term investment. With a diverse range of products in data communications and telecommunications equipment, including public safety and government solutions, Motorola Solutions is well-positioned to capitalize on emerging market trends and technological advancements.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
