Motorola Solutions Beats Up on Analysts Yet Again

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Motorola Solutions (NYS: MSI) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Motorola Solutions met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and earnings per share dropped significantly.

Margins expanded across the board.

Revenue details
Motorola Solutions logged revenue of $2.3 billion. The 16 analysts polled by S&P Capital IQ looked for net sales of $2.3 billion. Sales were 155% lower than the prior-year quarter's $2.2 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.87. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.82 per share on the same basis. GAAP EPS of $0.56 for Q4 were 34% lower than the prior-year quarter's $0.85 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.4%, 3,320 basis points better than the prior-year quarter. Operating margin was 15.0%, 1,770 basis points better than the prior-year quarter. Net margin was 8.0%, 1,500 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.9 billion. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $8.6 billion. The average EPS estimate is $2.89.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Motorola Solutions is hold, with an average price target of $49.26.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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