The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Motorola Solutions met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins expanded, net margins grew.
Motorola Solutions tallied revenue of $2.44 billion. The 15 analysts polled by S&P Capital IQ expected sales of $2.45 billion on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $2.23 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 $1.10. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.02 per share. GAAP EPS of $1.18 for Q4 were 111% higher than the prior-year quarter's $0.56 per share. (The prior-year quarter included $0.01 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 50.3%, 110 basis points worse than the prior-year quarter. Operating margin was 17.2%, 150 basis points better than the prior-year quarter. Net margin was 13.8%, 560 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.07 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $9.17 billion. The average EPS estimate is $3.67.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,952 members out of 2,389 rating the stock outperform, and 437 members rating it underperform. Among 431 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 357 give Motorola Solutions a green thumbs-up, and 74 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 $53.63.
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