Motorola Solutions Beats Analyst Estimates on EPS (MSI)

Motorola Solutions Beats Analyst Estimates on EPS

Motorola Solutions (NYSE: MSI ) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Motorola Solutions met expectations on revenues and beat expectations on earnings per share.

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

Margins increased across the board.

Revenue details
Motorola Solutions recorded revenue of $2.15 billion. The 14 analysts polled by S&P Capital IQ expected to see sales of $2.15 billion on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $2.11 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.84. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.73 per share. GAAP EPS of $0.72 for Q3 were 89% higher than the prior-year quarter's $0.38 per share. (The prior-year quarter included -$0.07 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.5%, 10 basis points better than the prior-year quarter. Operating margin was 15.0%, 10 basis points better than the prior-year quarter. Net margin was 9.6%, 350 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.42 billion. On the bottom line, the average EPS estimate is $1.01.

Next year's average estimate for revenue is $8.68 billion. The average EPS estimate is $3.03.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,963 members out of 2,403 rating the stock outperform, and 440 members rating it underperform. Among 421 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 342 give Motorola Solutions a green thumbs-up, and 79 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Motorola Solutions is outperform, with an average price target of $52.94.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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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