Motorola Solutions Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

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 thisarticle 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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