The 10-second takeaway
For the quarter ended June 30 (Q2), Motorola Solutions beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Motorola Solutions recorded revenue of $2.15 billion. The 15 analysts polled by S&P Capital IQ looked for sales of $2.11 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $1.98 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.70. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.69 per share. GAAP EPS of $0.62 for Q2 were 38% lower than the prior-year quarter's $1.00 per share. (The prior-year quarter included $0.86 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.3%, 120 basis points worse than the prior-year quarter. Operating margin was 12.9%, 40 basis points worse than the prior-year quarter. Net margin was 8.5%, 910 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $8.67 billion. The average EPS estimate is $3.03.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,969 members rating the stock outperform, and 441 members rating it underperform. Among 409 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 328 give Motorola Solutions a green thumbs-up, and 81 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 $52.19.
The game is changing for makers of communications equipment, and some of the old guard may not make it. Where will Motorola Solutions fit in? Who's going to lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Motorola Solutions to My Watchlist.
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.