- Motorola Solutions reported an impressive first quarter with adjusted EPS at $3.18, surpassing both last year’s $2.81 and the estimate of $3.01.
- Net sales were $2.53 billion, up 5.8% year-over-year, slightly above the estimated $2.52 billion.
- The Products and Systems Integration Segment achieved sales of $1.55 billion, marking a 3.8% increase year-over-year, beating the $1.53 billion estimate.
- The Software and Services Segment reported sales of $982 million, a 9.2% rise year-over-year, although slightly below the estimated $983.9 million.
- Gross margin improved to 51.4%, higher than the previous year’s 49.9% and also above the estimated 50.4%.
- Adjusted operating income was $716 million, marking a 12% increase year-over-year, exceeding the estimate of $684.4 million.
- The adjusted operating margin rose to 28.3%, surpassing last year’s 26.7% and the estimated 27.3%.
- Free cash flow was $473 million, reflecting a remarkable 41% increase year-over-year but below the estimated $595.2 million.
- For the second quarter of 2025, Motorola Solutions projects a revenue growth of approximately 4% compared to the same quarter in 2024, with non-GAAP EPS expected to range between $3.32 and $3.37 per share.
- The current analyst consensus is favorable with 9 buy ratings, 3 hold ratings, and no sell ratings.
Motorola Solutions on Smartkarma
Independent analysts on Smartkarma, like Baptista Research, have been closely monitoring Motorola Solutions. In a recent report titled “Motorola Solutions: Growth In Video & Command Center Technologies Driving Our Bullishness!”, Baptista Research highlighted the company’s strong performance in the fourth quarter of 2024. Despite challenges in currency rates, Motorola Solutions delivered record revenues and operating earnings across its main technologies: Land Mobile Radio (LMR), Video, and Command Center solutions. The company’s total backlog increased to $14.7 billion, indicating significant global demand for its safety and security solutions.
Another analysis by Baptista Research, titled “Motorola Solutions Inc.: Acceleration of Cloud & AI Video Solutions As A Vital Tool For Growth! – Major Drivers,” emphasized the company’s impressive financial results for the third quarter of 2024. Motorola Solutions reported record revenue and earnings per share, driven by strong market demand for its product and service offerings. Despite challenges like the U.K. Home Office revenue reduction, both segments—Products and Systems Integration and Software and Services—showed notable growth, with overall revenue increasing by 9%. Analysts remain bullish on Motorola Solutions, recognizing the acceleration of cloud and AI video solutions as key drivers for future growth.
A look at Motorola Solutions Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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 a data communications and telecommunications equipment provider with a promising long-term outlook as indicated by the Smartkarma Smart Scores. The company’s Growth and Momentum scores are particularly strong at 4, suggesting positive prospects for future expansion and market performance. Additionally, Motorola Solutions ranks well in Resilience with a score of 3, indicating its ability to withstand challenges and maintain stability. While the Value and Dividend scores are not as high at 2 each, the overall outlook for the company appears optimistic based on its strong ratings in key areas.
With a focus on developing data capture, wireless, infrastructure, and public safety products, Motorola Solutions is positioned to capitalize on evolving technology trends in the communications sector. The company’s portfolio includes two-way radios, wireless broadband networks, and wireless LAN securities, catering to both commercial and government clients. Investors may see potential in Motorola Solutions‘ Growth and Momentum scores, indicating a positive trajectory for the company’s future performance in the telecommunications equipment industry.
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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