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 Solutions Inc.’s (MSI - Free Report) fourth-quarter 2017 earnings of $2.10 per share (excluding $5.66 from non-recurring items) surpassed the Zacks Consensus Estimate of $2.03. Also, the bottom line improved 3.5% from the year-ago figure owing to an increase in sales, driven by the strong performance of its land and mobile radio operations.
Revenues increased 3.9% from the prior-year quarter to $1,957 million. The top line also outpaced the Zacks Consensus Estimate of $1,946 million.
The earnings and revenues beat pleased investors. As a result, the stock has inched up 1.6% in after-hours trading on Feb 1.
Operating margin (on an adjusted basis) in the fourth quarter of 2017 came in at 29.4% compared with 28.7% in the year-earlier quarter.
Operating Results
Product segment revenues came in at $1,233 million in the reported quarter, up 0.6% on a year-over-year basis. Service revenues totaled $724 million, up 10.2% year over year. This upside was driven by a solid performance across all regions.
Additionally, Motorola generated $761 million of cash from operations in the quarter under review, reflecting a substantial rise from the tally in the comparable period last year. Free cash flow as of Dec 31, 2017 was $740 million, up 63.4% from the level at 2016-end. Improved working capital performance and higher operating earnings drove this surge.
The company exited the fourth quarter with $1,268 million in total cash & cash equivalents compared with $1,030 million at the end of 2016. Long-term debt was $4,419 million at the end of the reported quarter compared with $4,392 million at year-end 2016. Additionally, this Schaumburg, IL-based company bought back shares worth $125 million and made dividend payments worth $76 million in the fourth quarter.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Motorola anticipated revenues to grow approximately 7% in the first quarter of 2018. While adjusted earnings per share are expected between 83 cents and 88 cents in the quarter. The Zacks Consensus Estimate for first-quarter 2018 earnings is pegged at 80 cents per share on revenues of $1.33 billion.
For 2018, the company expects revenues to improve roughly 5% while adjusted earnings per share are estimated in the range of $6.50-$6.65. The figures assume current foreign exchange rates and an adjusted effective tax rate of around 25%. The Zacks Consensus Estimate for earnings stands at $5.94 on revenues of $6.50 billion.
Another Important Development
Motorola has entered into an agreement with Avigilon to acquire the company in an all-cash transaction. Per the agreement, Motorola will purchase all of Avigilon’s outstanding shares for CAD $27 per share. The transaction is valued at approximately $1 billion and inclusive of Avigilon’s net debt. The buyout will widen Motorola’s mission-critical communications technologies portfolio.
Shares of InterDigital, Progress Software and DST Systems have gained more than 7%, 17% and 39%, respectively, in the last three months.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Image: Bigstock
Motorola (MSI) Q4 Earnings & Revenues Top, '18 View Issued
Motorola Solutions Inc.’s (MSI - Free Report) fourth-quarter 2017 earnings of $2.10 per share (excluding $5.66 from non-recurring items) surpassed the Zacks Consensus Estimate of $2.03. Also, the bottom line improved 3.5% from the year-ago figure owing to an increase in sales, driven by the strong performance of its land and mobile radio operations.
Revenues increased 3.9% from the prior-year quarter to $1,957 million. The top line also outpaced the Zacks Consensus Estimate of $1,946 million.
The earnings and revenues beat pleased investors. As a result, the stock has inched up 1.6% in after-hours trading on Feb 1.
Operating margin (on an adjusted basis) in the fourth quarter of 2017 came in at 29.4% compared with 28.7% in the year-earlier quarter.
Operating Results
Product segment revenues came in at $1,233 million in the reported quarter, up 0.6% on a year-over-year basis. Service revenues totaled $724 million, up 10.2% year over year. This upside was driven by a solid performance across all regions.
Additionally, Motorola generated $761 million of cash from operations in the quarter under review, reflecting a substantial rise from the tally in the comparable period last year. Free cash flow as of Dec 31, 2017 was $740 million, up 63.4% from the level at 2016-end. Improved working capital performance and higher operating earnings drove this surge.
The company exited the fourth quarter with $1,268 million in total cash & cash equivalents compared with $1,030 million at the end of 2016. Long-term debt was $4,419 million at the end of the reported quarter compared with $4,392 million at year-end 2016. Additionally, this Schaumburg, IL-based company bought back shares worth $125 million and made dividend payments worth $76 million in the fourth quarter.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Motorola Solutions, Inc. Price, Consensus and EPS Surprise | Motorola Solutions, Inc. Quote
Q1 & 2018 Outlook
Motorola anticipated revenues to grow approximately 7% in the first quarter of 2018. While adjusted earnings per share are expected between 83 cents and 88 cents in the quarter. The Zacks Consensus Estimate for first-quarter 2018 earnings is pegged at 80 cents per share on revenues of $1.33 billion.
For 2018, the company expects revenues to improve roughly 5% while adjusted earnings per share are estimated in the range of $6.50-$6.65. The figures assume current foreign exchange rates and an adjusted effective tax rate of around 25%. The Zacks Consensus Estimate for earnings stands at $5.94 on revenues of $6.50 billion.
Another Important Development
Motorola has entered into an agreement with Avigilon to acquire the company in an all-cash transaction. Per the agreement, Motorola will purchase all of Avigilon’s outstanding shares for CAD $27 per share. The transaction is valued at approximately $1 billion and inclusive of Avigilon’s net debt. The buyout will widen Motorola’s mission-critical communications technologies portfolio.
Zacks Rank & Other Key Picks
Motorola sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the broader Computer and Technology sector include InterDigital, Inc. (IDCC - Free Report) , Progress Software Corporation (PRGS - Free Report) and DST Systems, Inc. with the same bullish Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of InterDigital, Progress Software and DST Systems have gained more than 7%, 17% and 39%, respectively, in the last three months.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks >>