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Motorola (MSI) Stock Jumps 5.9%: Will It Continue to Soar?

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Motorola (MSI - Free Report) shares ended the last trading session 5.9% higher at $199.07. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.3% loss over the past four weeks.

MSI’s rally is driven by the company’s solid first-quarter 2021 results, wherein both adjusted earnings and revenues surpassed the respective Zacks Consensus Estimate and improved year over year. Diligent execution of operational plans and healthy growth dynamics backed by solid order trends played a vital role. Markedly, revenues were at a record high of $1,773 million, up 7.1% year over year to due to rise in demand in the Americas and the International business on early signs of post-pandemic revival.

Encouraged by such growth, the company expects to drive its leadership position on the back of disciplined capital deployment and a strong balance sheet position amid robust demand environment. A significant body-cam contract win, worth $17.5 million from the French Police also acted as a tailwind. Notably, the order for 30,000 camera units is part of Motorola’s augmented footprint in the body cam market.

Price and Consensus

Price Consensus Chart for MSI

This communications equipment maker is expected to post quarterly earnings of $1.71 per share in its upcoming report, which represents a year-over-year change of +23%. Revenues are expected to be $1.83 billion, up 13.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Motorola, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MSI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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