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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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. 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.