Motorola Solutions Beats on Both Top and Bottom Lines
Motorola Solutions (NYS: MSI) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Motorola Solutions beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Gross margins dropped, operating margins expanded, and net margins contracted.
Motorola Solutions reported revenue of $1.96 billion. The 14 analysts polled by S&P Capital IQ predicted revenue of $1.93 billion on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $1.88 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.59. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share on the same basis. GAAP EPS of $0.49 for Q1 were 66% lower than the prior-year quarter's $1.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.7%, 50 basis points worse than the prior-year quarter. Operating margin was 12.3%, 20 basis points better than the prior-year quarter. Net margin was 8.0%, 1,840 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.10 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $8.64 billion. The average EPS estimate is $3.02.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,976 members out of 2,419 rating the stock outperform, and 443 members rating it underperform. Among 440 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 358 give Motorola Solutions a green thumbs-up, and 82 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Motorola Solutions is hold, with an average price target of $51.24.
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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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