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Motorola (MSI) Earnings and Revenues Beat Estimates in Q1
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Motorola Solutions Inc.’s (MSI - Free Report) first-quarter 2017 earnings (excluding 19 cents from non-recurring items) of 64 cents per share comfortably beat the Zacks Consensus Estimate of 50 cents. Also, earnings improved 52.4% from the year-ago figure owing to a significant reduction in costs and increase in sales.
Revenues in the quarter increased 7.4% from the year-ago quarter to $1,281 million and also surpassed the Zacks Consensus Estimate of $1,241 million. Operating margin (on an adjusted basis) came in at 17.5% in the quarter compared with 13.9% a year ago. Higher sales and lower costs led to the uptick.
Operating Results
Product segment revenues came in at $703 million in the first quarter, up marginally on a year-over-year basis. Service revenues totaled to $578 million, up 18% year over year. The upside was driven by inclusion of products from Airwave Solutions acquired last year.
Additionally, Motorola generated $142 million of cash from operations in the first quarter of 2017 compared with only $13 million in the prior-year quarter. The surge came on the back of the growth in earnings and revenues. The company exited the quarter with $829 million in cash & cash equivalents compared with $1,030 million at the end of 2016. Long-term debt was $4,414 million in the end of the first quarter compared with $4, 392 million at the end of 2016. Notably, Motorola shelled out approximately $55 million in acquisitions during the quarter under review.
Share Repurchase and Dividends
The company returned approximately $178 million to shareholders through buybacks and $77 million in dividends in the reported quarter.
Outlook
This Zacks Rank #2 (Buy) company expects revenues in the second quarter of 2017 to improve in the band of 2% to 3%, on a year-over-year basis. While adjusted earnings per share in the second quarter are projected in the band of 98 cents to $1.03, the Zacks Consensus Estimate of $1.05 per share is pegged above the guided range. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the full-year 2017, Motorola now expects revenues to increase in the band of 2% to 3% (previous guidance had called for growth in the range of 1% to 2%). Earnings (on an adjusted basis) are now projected in the band of $5.08 to $5.23 per share (the earlier view had projected earnings per share in $5.05 to $5.20 per share range). The Zacks Consensus Estimate is currently pegged at $4.91 per share.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Apart from Motorola, companies like Harris Corp. , Citrix Systems and ADTRAN Inc. (ADTN - Free Report) have also reported better-than-expected earnings and revenues in their most recent releases.
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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Motorola (MSI) Earnings and Revenues Beat Estimates in Q1
Motorola Solutions Inc.’s (MSI - Free Report) first-quarter 2017 earnings (excluding 19 cents from non-recurring items) of 64 cents per share comfortably beat the Zacks Consensus Estimate of 50 cents. Also, earnings improved 52.4% from the year-ago figure owing to a significant reduction in costs and increase in sales.
Revenues in the quarter increased 7.4% from the year-ago quarter to $1,281 million and also surpassed the Zacks Consensus Estimate of $1,241 million. Operating margin (on an adjusted basis) came in at 17.5% in the quarter compared with 13.9% a year ago. Higher sales and lower costs led to the uptick.
Operating Results
Product segment revenues came in at $703 million in the first quarter, up marginally on a year-over-year basis. Service revenues totaled to $578 million, up 18% year over year. The upside was driven by inclusion of products from Airwave Solutions acquired last year.
Additionally, Motorola generated $142 million of cash from operations in the first quarter of 2017 compared with only $13 million in the prior-year quarter. The surge came on the back of the growth in earnings and revenues. The company exited the quarter with $829 million in cash & cash equivalents compared with $1,030 million at the end of 2016. Long-term debt was $4,414 million in the end of the first quarter compared with $4, 392 million at the end of 2016. Notably, Motorola shelled out approximately $55 million in acquisitions during the quarter under review.
Share Repurchase and Dividends
The company returned approximately $178 million to shareholders through buybacks and $77 million in dividends in the reported quarter.
Outlook
This Zacks Rank #2 (Buy) company expects revenues in the second quarter of 2017 to improve in the band of 2% to 3%, on a year-over-year basis. While adjusted earnings per share in the second quarter are projected in the band of 98 cents to $1.03, the Zacks Consensus Estimate of $1.05 per share is pegged above the guided range. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the full-year 2017, Motorola now expects revenues to increase in the band of 2% to 3% (previous guidance had called for growth in the range of 1% to 2%). Earnings (on an adjusted basis) are now projected in the band of $5.08 to $5.23 per share (the earlier view had projected earnings per share in $5.05 to $5.20 per share range). The Zacks Consensus Estimate is currently pegged at $4.91 per share.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Motorola Solutions, Inc. Price, Consensus and EPS Surprise | Motorola Solutions, Inc. Quote
Apart from Motorola, companies like Harris Corp. , Citrix Systems and ADTRAN Inc. (ADTN - Free Report) have also reported better-than-expected earnings and revenues in their most recent releases.
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 >>