- Motorola Solutions expects an adjusted EPS from $2.97 to $3.02 in the second quarter, surpassing the estimated $2.91.
- Revenue growth is expected to be between +7% to +8% in Q2.
- The first quarter results show an adjusted EPS of $2.81 as compared to the estimated $2.53 and $2.22 year to year.
- Motorola’s net sales in Q1 were $2.39 billion, a 10% increase from the previous year and above the estimated $2.35 billion.
- Sales from the Products and Systems Integration Segment stood at $1.49 billion, a 14% year on year growth and exceeding the estimate of $1.41 billion.
- Software and Services Segment sales were $899 million in Q1, representing a 3.6% year to year growth. However, it fell short of the estimated $929.8 million.
- Q1 saw a Gross margin of 49.9%, surpassing both the previous year’s 48.2% and the estimated 49.1%.
- The adjusted operating income was $638 million in Q1, a 20% year to year rise and above the estimated $599.1 million.
- The adjusted operating margin in Q1 was 26.7%, above both the 24.5% of the previous year and the 25.6% estimated.
- Motorola’s Q1 free cash flow was $336 million, a significant improvement from the negative $62 million the previous year. However, it fell short of the estimated $361.1 million.
- The company’s updated full-year 2024 guidance predicts a revenue growth of approximately 7%, up from the prior 6%, and non-GAAP EPS of between $12.98 and $13.08, up from the earlier prediction of $12.62 to $12.72.
- Motorola expects Q2 2024 revenue growth to be between 7% and 8% compared to Q2 2023.
- The company is confident in its robust backlog and strong balance sheet which is expected to sustain them moving forward.
- As a result, Motorola is increasing both its revenue and earnings expectations for the full year.
Motorola Solutions on Smartkarma
Analysts at Baptista Research on Smartkarma have been closely following Motorola Solutions. In a report titled “Motorola Solutions: Enhanced Safety Portfolio With The Acquisition of IPVideo & 5 Other Drivers Of The Company’s Stock In 2024! – Financial Forecasts,” they highlighted the company’s robust performance in the 2023 fourth quarter. Gregory Brown, Chairman and CEO, announced record-high revenue across all segments and technologies, indicating strong demand for their Security and Safety Solutions. CFO Jason Winkler provided key financial details, showing a 5% revenue growth in the quarter across all areas.
Another report by Baptista Research, “Motorola Solutions: Command Center & Software Growth As Major Growth Catalyst! – Key Drivers,” lauded the company’s solid performance in the last quarter. Motorola experienced an 8% revenue increase, surpassing expectations. Sales in the Products and SI segment grew by 5%, while the Software and Services segment saw a significant 12% revenue growth. This positive momentum, inclusive of the Airwave deferral, indicates promising growth prospects for Motorola Solutions in the software and services sector.
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. has demonstrated strong momentum and growth potential in the long term, according to Smartkarma Smart Scores. With a score of 4 in both Growth and Momentum, the company is positioned to expand its market presence and increase shareholder value. Although its Value and Dividend scores are on the lower side at 2, the robust growth prospects indicate promising returns for investors in the future.
As a data communications and telecommunications equipment provider, Motorola Solutions offers a diverse range of products including data capture, wireless infrastructure, and two-way radios. The company also specializes in public safety and government products, showcasing its resilience in serving critical sectors. With a solid foundation in place and a focus on innovation, Motorola Solutions is poised for sustained growth and market leadership in the evolving technology landscape.
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.
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