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What's in Store for Motorola Solutions (MSI) in Q2 Earnings?
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Motorola Solutions, Inc.(MSI - Free Report) is scheduled to report second-quarter 2017 results on Aug 3, after the market closes.
In fact, the company delivered a positive earnings surprise of 28% in the previous quarter. It has also outpaced the Zacks Consensus Estimate in the last four quarters with an average beat of 16.62%.
Notably, Motorola Solutions has an impressive track record with respect to earnings that is reflected in its price performance for the last one year. While the stock has surged 33.7%, its industry gained only 1% in the same period.
However, our quantitative model does not conclusively show earnings beat for Motorola Solutions this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is not the case here, as you will see below:
Zacks ESP: Motorola Solutions has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 99 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Motorola Solutions has a Zacks Rank #2, which increases the predictive power of ESP. However, that alone is not sufficient to secure an earnings beat.
Conversely, we caution against a Zacks Rank #4 or 5 (Sell rated) stock going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The company’s efforts to expand its product portfolio are encouraging. In fact, its performance has been boosted by the acquisition of Airwave Solutions, which was completed last year. Moreover, the Airwave Solutions buyout is anticipated to drive second-quarter revenues. Also, the acquisitions of Spillman Technologies and Interexport are expected to augment the top line.
Motorola Solutions projects revenues in the to-be-reported quarter to improve in the band of 2% to 3% on a year-over-year basis. Adjusted earnings per share are expected to be in 98 cents to $1.03 range.
We are also impressed by the company’s efforts to reward investors through dividend payments and buybacks. Nevertheless, we believe that costs related to the abovementioned acquisitions will hurt the bottom line.
Moreover, adverse foreign currency movements might hamper results in the quarter. The company’s high debt levels also remain a concern.
Stocks to Consider
Investors interested in the broader Computer and Technology sector may consider the following stocks, since our model shows that these companies also possess the right combination of elements to come up with an earnings beat this time.
Citrix Systems has an Earnings ESP of +1.18% and a Zacks Rank #3. The company will report its second-quarter earnings numbers on Aug 2.
Arrow Electronics, Inc. (ARW - Free Report) has an Earnings ESP of +1.13% and a Zacks Rank #2. The company will report its second-quarter earnings numbers on Aug 3.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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What's in Store for Motorola Solutions (MSI) in Q2 Earnings?
Motorola Solutions, Inc.(MSI - Free Report) is scheduled to report second-quarter 2017 results on Aug 3, after the market closes.
In fact, the company delivered a positive earnings surprise of 28% in the previous quarter. It has also outpaced the Zacks Consensus Estimate in the last four quarters with an average beat of 16.62%.
Notably, Motorola Solutions has an impressive track record with respect to earnings that is reflected in its price performance for the last one year. While the stock has surged 33.7%, its industry gained only 1% in the same period.
However, our quantitative model does not conclusively show earnings beat for Motorola Solutions this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is not the case here, as you will see below:
Zacks ESP: Motorola Solutions has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 99 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Motorola Solutions has a Zacks Rank #2, which increases the predictive power of ESP. However, that alone is not sufficient to secure an earnings beat.
Conversely, we caution against a Zacks Rank #4 or 5 (Sell rated) stock going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Motorola Solutions, Inc. Price and EPS Surprise
Motorola Solutions, Inc. Price and EPS Surprise | Motorola Solutions, Inc. Quote
Factors Likely at Play
The company’s efforts to expand its product portfolio are encouraging. In fact, its performance has been boosted by the acquisition of Airwave Solutions, which was completed last year. Moreover, the Airwave Solutions buyout is anticipated to drive second-quarter revenues. Also, the acquisitions of Spillman Technologies and Interexport are expected to augment the top line.
Motorola Solutions projects revenues in the to-be-reported quarter to improve in the band of 2% to 3% on a year-over-year basis. Adjusted earnings per share are expected to be in 98 cents to $1.03 range.
We are also impressed by the company’s efforts to reward investors through dividend payments and buybacks. Nevertheless, we believe that costs related to the abovementioned acquisitions will hurt the bottom line.
Moreover, adverse foreign currency movements might hamper results in the quarter. The company’s high debt levels also remain a concern.
Stocks to Consider
Investors interested in the broader Computer and Technology sector may consider the following stocks, since our model shows that these companies also possess the right combination of elements to come up with an earnings beat this time.
Citrix Systems has an Earnings ESP of +1.18% and a Zacks Rank #3. The company will report its second-quarter earnings numbers on Aug 2.
AMTEK, Inc. (AME - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3. The company will report its second-quarter earnings numbers on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arrow Electronics, Inc. (ARW - Free Report) has an Earnings ESP of +1.13% and a Zacks Rank #2. The company will report its second-quarter earnings numbers on Aug 3.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>