We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Motorola (MSI) Earnings and Revenues Beat Estimates in Q4
Read MoreHide Full Article
Motorola Solutions Inc.’s (MSI - Free Report) fourth-quarter 2016 earnings (including stock-based compensation expenses) of $1.98 per share comfortably beat the Zacks Consensus Estimate of $1.80. Also, earnings improved 32% from the year-ago figure due to a significant reduction in costs and increase in sales.
Revenues in the quarter increased 11.95% from the year-ago quarter to $1,883 million and also surpassed the Zacks Consensus Estimate of $1,840 million. Operating margin (on an adjusted basis) came in at 28.7% in the quarter compared with 27.2% a year ago. Higher sales led to the uptick.
Operating Results
Product segment revenues came in at $1,226 million in the fourth quarter. Growth was witnessed across the board.
Services revenues totaled to $657 million, up 18% year over year. The inclusion of products from Airwave Solutions, acquired last year, along with organic growth in Managed & Support services, drove the upside.
Motorola generated $513 million of cash from operations in the fourth quarter as against $415 million in the prior-year quarter. At the end of 2016, Motorola had $1,030 million in cash and cash equivalents compared with $1,980 million at the end of 2015. Long-term debt was $4,392 million at the end of 2016 compared with $4,345 million at the end of 2015.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
The company returned approximately $114 million to shareholders through buybacks and $68 million in dividends in the fourth quarter of 2016.
Outlook
This Zacks Rank #3 (Hold) company expects revenues in the first quarter of 2017 to improve from 3% to 5%, on a year-over-year basis. The Airwave Solutions buyout is expected to boost first-quarter revenues by about $115 million. While adjusted earnings per share in the first quarter are projected in the band of 52 cents to 57 cents, the Zacks Consensus Estimate of 53 cents remains within the guided range.
For full-year 2017, Motorola expects revenues to increase in the band of 1% to 2%. Earnings (on an adjusted basis) are projected in the range of $5.05 to $5.20 per share. The Zacks Consensus Estimate currently stands at $4.72 per share.
Some of its peers in the broader computer and technology sector that also beat the Zacks Consensus Estimate for earnings in the quarter ending in December include Harris Corp. , Nokia (NOK - Free Report) and ADTRAN Inc. (ADTN - Free Report) .
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Motorola (MSI) Earnings and Revenues Beat Estimates in Q4
Motorola Solutions Inc.’s (MSI - Free Report) fourth-quarter 2016 earnings (including stock-based compensation expenses) of $1.98 per share comfortably beat the Zacks Consensus Estimate of $1.80. Also, earnings improved 32% from the year-ago figure due to a significant reduction in costs and increase in sales.
Revenues in the quarter increased 11.95% from the year-ago quarter to $1,883 million and also surpassed the Zacks Consensus Estimate of $1,840 million. Operating margin (on an adjusted basis) came in at 28.7% in the quarter compared with 27.2% a year ago. Higher sales led to the uptick.
Operating Results
Product segment revenues came in at $1,226 million in the fourth quarter. Growth was witnessed across the board.
Services revenues totaled to $657 million, up 18% year over year. The inclusion of products from Airwave Solutions, acquired last year, along with organic growth in Managed & Support services, drove the upside.
Motorola generated $513 million of cash from operations in the fourth quarter as against $415 million in the prior-year quarter. At the end of 2016, Motorola had $1,030 million in cash and cash equivalents compared with $1,980 million at the end of 2015. Long-term debt was $4,392 million at the end of 2016 compared with $4,345 million at the end of 2015.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Motorola Solutions, Inc. Price, Consensus and EPS Surprise | Motorola Solutions, Inc. Quote
Share Repurchase and Dividends
The company returned approximately $114 million to shareholders through buybacks and $68 million in dividends in the fourth quarter of 2016.
Outlook
This Zacks Rank #3 (Hold) company expects revenues in the first quarter of 2017 to improve from 3% to 5%, on a year-over-year basis. The Airwave Solutions buyout is expected to boost first-quarter revenues by about $115 million. While adjusted earnings per share in the first quarter are projected in the band of 52 cents to 57 cents, the Zacks Consensus Estimate of 53 cents remains within the guided range.
For full-year 2017, Motorola expects revenues to increase in the band of 1% to 2%. Earnings (on an adjusted basis) are projected in the range of $5.05 to $5.20 per share. The Zacks Consensus Estimate currently stands at $4.72 per share.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some of its peers in the broader computer and technology sector that also beat the Zacks Consensus Estimate for earnings in the quarter ending in December include Harris Corp. , Nokia (NOK - Free Report) and ADTRAN Inc. (ADTN - Free Report) .
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>