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Will Healthy Revenue Growth Aid Motorola (MSI) Q2 Earnings?
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Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report second-quarter 2021 results after the closing bell on Aug 5. In the last reported quarter, the company delivered an earnings surprise of 15.4%, surpassing the Zacks Consensus Estimate by 25 cents. In the second quarter, the company is likely to have generated higher consolidated revenues on a year-over-year basis due to healthy demand curve and solid order trends.
Factors at Play
During the second quarter, Motorola inked an agreement with Anterix Inc. to streamline the communications infrastructure of the utility sector. The company’s Private Broadband for Critical Infrastructure solution makes it the sole technology provider that blends LTE service in the 900 MHz and CBRS (Citizens Broadband Radio Service) spectrums to provide utilities with superior bandwidth and technical flexibility. The solution is likely to boost interoperable mission-critical private networks driven by expanded coverage. It will provide cyber protection against potential cyber threats and sow the seeds for technology automation of utility services across remote locations. These are likely to get reflected in the upcoming quarterly results.
In the second quarter, Motorola announced the deployment of its VB400 body-worn cameras by the Malta Police Force for all frontline officers across the country as part of its modernization strategy. It also enriched its video security and analytics portfolio with the introduction of a scanning solution dubbed Concealed Weapon Detection. The solution uses cutting-edge sensors and artificial intelligence to detect a range of hidden weapons and threats on visitors entering a premise. 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 additional services to its cybersecurity services portfolio in the quarter. The expansion is primarily aimed at safeguarding mission-critical operations of various public safety agencies and enterprises against malicious activities like data breaches. During the quarter, Motorola collaborated with BlueLight Commercial to deploy its integrated 4RE In-Car Video Solutions to improve road security and safety. The in-car video technology enables monitoring on a real-time basis and captures the footage of an emergency situation from multiple camera points to provide a live 360-degree view, thereby improving the cooperation between control room personnel and frontline officers. These are likely to have resulted in top-line growth.
With 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 expansion. The Zacks Consensus Estimate for total revenues for the second quarter is pegged at $1,942 million. In the year-earlier quarter, it generated revenues of $1,618 million. The consensus mark for earnings is currently pegged at $1.92 per share, indicating an improvement from $1.39 reported in the year-earlier quarter. During first-quarter 2020 earnings release, management projected second-quarter 2021 non-GAAP earnings in the $1.90-$1.95 per share range on year-over-year revenue growth of 19-20%.
Earnings Whispers
Our proven model predicts 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 perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.59%. 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.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Airbnb, Inc. (ABNB - Free Report) is +9.28% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Aug 12.
The Earnings ESP for GrowGeneration Corp. (GRWG - Free Report) is +3.45% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 12.
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Will Healthy Revenue Growth Aid Motorola (MSI) Q2 Earnings?
Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report second-quarter 2021 results after the closing bell on Aug 5. In the last reported quarter, the company delivered an earnings surprise of 15.4%, surpassing the Zacks Consensus Estimate by 25 cents. In the second quarter, the company is likely to have generated higher consolidated revenues on a year-over-year basis due to healthy demand curve and solid order trends.
Factors at Play
During the second quarter, Motorola inked an agreement with Anterix Inc. to streamline the communications infrastructure of the utility sector. The company’s Private Broadband for Critical Infrastructure solution makes it the sole technology provider that blends LTE service in the 900 MHz and CBRS (Citizens Broadband Radio Service) spectrums to provide utilities with superior bandwidth and technical flexibility. The solution is likely to boost interoperable mission-critical private networks driven by expanded coverage. It will provide cyber protection against potential cyber threats and sow the seeds for technology automation of utility services across remote locations. These are likely to get reflected in the upcoming quarterly results.
In the second quarter, Motorola announced the deployment of its VB400 body-worn cameras by the Malta Police Force for all frontline officers across the country as part of its modernization strategy. It also enriched its video security and analytics portfolio with the introduction of a scanning solution dubbed Concealed Weapon Detection. The solution uses cutting-edge sensors and artificial intelligence to detect a range of hidden weapons and threats on visitors entering a premise. 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 additional services to its cybersecurity services portfolio in the quarter. The expansion is primarily aimed at safeguarding mission-critical operations of various public safety agencies and enterprises against malicious activities like data breaches. During the quarter, Motorola collaborated with BlueLight Commercial to deploy its integrated 4RE In-Car Video Solutions to improve road security and safety. The in-car video technology enables monitoring on a real-time basis and captures the footage of an emergency situation from multiple camera points to provide a live 360-degree view, thereby improving the cooperation between control room personnel and frontline officers. These are likely to have resulted in top-line growth.
With 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 expansion. The Zacks Consensus Estimate for total revenues for the second quarter is pegged at $1,942 million. In the year-earlier quarter, it generated revenues of $1,618 million. The consensus mark for earnings is currently pegged at $1.92 per share, indicating an improvement from $1.39 reported in the year-earlier quarter. During first-quarter 2020 earnings release, management projected second-quarter 2021 non-GAAP earnings in the $1.90-$1.95 per share range on year-over-year revenue growth of 19-20%.
Earnings Whispers
Our proven model predicts 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 perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.59%. 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.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
CyberArk Software Ltd. (CYBR - Free Report) is set to release quarterly numbers on Aug 12. It has an Earnings ESP of +37.93% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Airbnb, Inc. (ABNB - Free Report) is +9.28% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Aug 12.
The Earnings ESP for GrowGeneration Corp. (GRWG - Free Report) is +3.45% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 12.