Motorola Solutions, Inc. (MSI - Free Report) recently communicated that Aena, a state-owned company that manages airports and heliports in Spain, will implement its new DIMETRA X Core TETRA digital radio system and more than 1,600 TETRA radio terminals. The state-of-the-art digital radio technology is planned to be deployed at Josep Tarradellas Barcelona-El Prat Airport, starting from 2020. Financial terms of the deal remained undisclosed.
The mission-critical communication solutions provider has a long-standing experience in providing reliable TETRA radio systems to airports globally. Since 2018, its TETRA technology is used by the Spanish airports of Ibiza, Malaga-Costa del Sol and Alicante-Elche. The communication systems are also deployed across the Mediterranean airports of Aktion, Chania, Kavala, Corfu, Kos, Mytilene, Mykonos, Rhodes, Samos, Santorini, Skiathos, Thessaloniki and Zakynthos.
In Germany, the company has equipped airports such as Leipzig/Halle, Stuttgart and Baden-Airpark with its technology. Reportedly, its DIMETRA X Core technology is an ideal solution for expanding existing TETRA infrastructure at crucial hubs and transfer points like airports. With a software-defined core, enhanced cyber security and smart interfaces, DIMETRA X Core is built for long-term performance.
Motorola is likely to benefit from organic growth and acquisition initiatives, disciplined capital allocation, and favorable macroeconomic climate. Its competitive position along with an attractive portfolio for large addressable market augurs well for future growth.
In the last earnings report, the company’s net sales were $1,994 million compared with $1,862 million in the year-ago quarter, primarily driven by growth in both the segments (i.e. Products and Systems Integration, and Services and Software) with solid performance in the Americas.
Motorola has long-term earnings growth expectation of 8.5%. Driven by strong business trends including the value of its unique public safety ecosystem, the stock has gained 44.1% compared with the industry’s growth of 21.3% year to date.
The Zacks Consensus Estimate for its current-year earnings has been revised 0.4% upward over the past 30 days. The company topped earnings estimates in each of the trailing four quarters, delivering an average beat of 6.7%.
Motorola currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry include Qualcomm Incorporated (QCOM - Free Report) , Ubiquiti Inc. (UI - Free Report) and PCTEL, Inc. (PCTI - Free Report) . While Qualcomm and Ubiquiti sport a Zacks Rank #1 (Strong Buy), PCTEL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Qualcomm has long-term earnings growth expectation of 14%.
Ubiquiti has long-term earnings growth expectation of 9.4%.
PCTEL surpassed earnings estimates in each of the trailing four quarters, the average surprise being 150.6%.
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