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Will Top-Line Woes Affect Motorola's (MSI) Q4 Earnings?
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Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report fourth-quarter 2020 results after the closing bell on Feb 4. In the last reported quarter, the company delivered a positive earnings surprise of 10.8%, surpassing the Zacks Consensus Estimate by 19 cents. In the fourth quarter, the company is likely to have generated lower consolidated revenues on a year-over-year basis due to the coronavirus-induced turmoil.
Factors at Play
During the fourth quarter, Motorola launched the WAVE PTX solution in Colombia, which is considered the perfect solution for on-the-go workforce that enables employees to experience the perks of push-to-talk workgroup communications with best-in-class network capabilities without the need for expensive infrastructure expansion. In addition, Motorola collaborated with Energa-Operator to assist the latter with its state-of-the-art radio communications system. Dubbed TETRA (Terrestrial Trunked Radio), the independent and reliable critical communication system will bolster Energa-Operator’s day-to-day operations and provide steady electric supply in critical situations, thereby benefiting 200,000 business and 2.9 million private customers.
Also, in the quarter, the company launched the Avigilon H5 platform cameras, L5F fixed license plate recognition camera system, mobile video-as-a-service bundle and VB400 body-worn camera for upgraded video analytics for better object detection and tracking. Such innovative product launches and system deployments are likely to have translated into incremental revenues for the Products & Systems Integration segment.
The Services and Software segment has been another area of significant focus. The company introduced a cloud-based service for mission critical environments — CommandCentral Citizen Input — an industry-leading application that aids public-safety answering points to combine data and improve the safety of critical personnel, even under stressful conditions. Motorola unveiled PremierOne Cloud suite, which is an integrated cloud-native application that simplifies day-to-day operations with greater efficiency by combining information in the cloud on the back of seamless data sharing and management. The company also secured a contract from the Government of Oaxaca to upgrade the radio communications infrastructure of the Southern Mexico state and provide best-in-class support to the local public safety agencies.
In addition, Motorola collaborated with Verizon Communications to introduce an innovative mission-critical push-to-talk solution for an interoperable broadband communication gateway for first responders. Dubbed Group First Response, the solution leverages Verizon’s LTE network to facilitate end users to communicate seamlessly via voice, data and video across various compatible devices, thereby augmenting public safety measures. All these positives are likely to be reflected in the upcoming results.
Despite healthy demand across land mobile radio products and other devices, driven by a comprehensive suite of services that ensures continuity and reduces risks related to critical communications operations, Motorola is likely to have recorded top-line contraction. The Zacks Consensus Estimate for total revenues for the fourth quarter is pegged at $2,239 million. In the year-earlier quarter, it generated revenues of $2,377 million. The consensus mark for earnings is currently pegged at $2.74 per share, indicating a decline from $2.94 reported in the year-earlier quarter. During third-quarter 2020 earnings release, management projected fourth-quarter 2020 non-GAAP earnings in the $2.71-$2.76 per share range on a year-over-year revenue decline of 5.5-6%.
Earnings Whispers
Our proven model does not predict an earnings beat for Motorola this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Motorola currently has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Cambium Networks Corporation (CMBM - Free Report) is +6.75% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 18.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +0.76% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 18.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Will Top-Line Woes Affect Motorola's (MSI) Q4 Earnings?
Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report fourth-quarter 2020 results after the closing bell on Feb 4. In the last reported quarter, the company delivered a positive earnings surprise of 10.8%, surpassing the Zacks Consensus Estimate by 19 cents. In the fourth quarter, the company is likely to have generated lower consolidated revenues on a year-over-year basis due to the coronavirus-induced turmoil.
Factors at Play
During the fourth quarter, Motorola launched the WAVE PTX solution in Colombia, which is considered the perfect solution for on-the-go workforce that enables employees to experience the perks of push-to-talk workgroup communications with best-in-class network capabilities without the need for expensive infrastructure expansion. In addition, Motorola collaborated with Energa-Operator to assist the latter with its state-of-the-art radio communications system. Dubbed TETRA (Terrestrial Trunked Radio), the independent and reliable critical communication system will bolster Energa-Operator’s day-to-day operations and provide steady electric supply in critical situations, thereby benefiting 200,000 business and 2.9 million private customers.
Also, in the quarter, the company launched the Avigilon H5 platform cameras, L5F fixed license plate recognition camera system, mobile video-as-a-service bundle and VB400 body-worn camera for upgraded video analytics for better object detection and tracking. Such innovative product launches and system deployments are likely to have translated into incremental revenues for the Products & Systems Integration segment.
The Services and Software segment has been another area of significant focus. The company introduced a cloud-based service for mission critical environments — CommandCentral Citizen Input — an industry-leading application that aids public-safety answering points to combine data and improve the safety of critical personnel, even under stressful conditions. Motorola unveiled PremierOne Cloud suite, which is an integrated cloud-native application that simplifies day-to-day operations with greater efficiency by combining information in the cloud on the back of seamless data sharing and management. The company also secured a contract from the Government of Oaxaca to upgrade the radio communications infrastructure of the Southern Mexico state and provide best-in-class support to the local public safety agencies.
In addition, Motorola collaborated with Verizon Communications to introduce an innovative mission-critical push-to-talk solution for an interoperable broadband communication gateway for first responders. Dubbed Group First Response, the solution leverages Verizon’s LTE network to facilitate end users to communicate seamlessly via voice, data and video across various compatible devices, thereby augmenting public safety measures. All these positives are likely to be reflected in the upcoming results.
Despite healthy demand across land mobile radio products and other devices, driven by a comprehensive suite of services that ensures continuity and reduces risks related to critical communications operations, Motorola is likely to have recorded top-line contraction. The Zacks Consensus Estimate for total revenues for the fourth quarter is pegged at $2,239 million. In the year-earlier quarter, it generated revenues of $2,377 million. The consensus mark for earnings is currently pegged at $2.74 per share, indicating a decline from $2.94 reported in the year-earlier quarter. During third-quarter 2020 earnings release, management projected fourth-quarter 2020 non-GAAP earnings in the $2.71-$2.76 per share range on a year-over-year revenue decline of 5.5-6%.
Earnings Whispers
Our proven model does not predict an earnings beat for Motorola this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Motorola Solutions, Inc. Price and EPS Surprise
Motorola Solutions, Inc. price-eps-surprise | Motorola Solutions, Inc. Quote
Zacks Rank: Motorola currently has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
T-Mobile US, Inc. (TMUS - Free Report) is set to release quarterly numbers on Feb 4. It has an Earnings ESP of +11.17% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Cambium Networks Corporation (CMBM - Free Report) is +6.75% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 18.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +0.76% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 18.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>