The 10-second takeaway
For the quarter ended June 29 (Q2), Motorola Solutions met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins dropped, net margins expanded.
Motorola Solutions reported revenue of $2.11 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $2.13 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.12. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.04 per share. Non-GAAP EPS of $1.12 for Q2 were 60% higher than the prior-year quarter's $0.70 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.94 for Q2 were 52% higher than the prior-year quarter's $0.62 per share. (The prior-year quarter included $0.02 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 48.8%, 70 basis points worse than the prior-year quarter. Operating margin was 12.6%, 100 basis points worse than the prior-year quarter. Net margin was 12.2%, 370 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.26 billion. On the bottom line, the average EPS estimate is $1.24.
Next year's average estimate for revenue is $8.92 billion. The average EPS estimate is $4.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,942 members out of 2,378 rating the stock outperform, and 436 members rating it underperform. Among 430 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 356 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 $58.50.
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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 position in any of the stocks mentioned. 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.