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Will Modest Top-Line Growth Buoy Motorola (MSI) Q1 Earnings?
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Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report first-quarter 2022 results on May 12, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 4%. It pulled off a trailing four-quarter earnings surprise of 9.4%, on average.
The Chicago, IL-based company is expected to have recorded year-over-year higher revenues on the back of growth in both segments — Products and Systems Integration, and Services and Software. It benefits from the increasing demand for its mission-critical technologies in North America and globally.
Factors at Play
During the quarter, Motorola secured a $29 million contract extension from the U.S. Department of Defense to bolster mission-critical communications infrastructure in the first-responder community in the U.S. Navy. The deal reinforces its competitive position in the public safety ecosystem and extends the operations of the Land Mobile Radio (LMR) network of the naval community. It will leverage its much-acclaimed P25 trunked network to strengthen the deployment of LMR communication for easier access, enhanced coverage and stronger security in the Navy. The company also secured a prime contract from MetrôRio to provide VB400 body-worn cameras for the safety and security of employees and passengers across the rail network of Brazil.
In the first quarter, Motorola unveiled Curve Wi-Fi enhanced business radio with voice assistance capabilities to support retail, hospitality and restaurant operations. Curve has been designed to enable quick push-to-talk radio communications in busy environments and Wi-Fi for voice assistance. The company also collaborated with Indyme Solutions, a global leader in customer engagement, loss prevention and workflow automation in the retail industry. The collaboration allows Curve to be integrated with Indyme’s customer engagement and loss prevention systems to respond quickly to incidents.
Riding on such state-of-the-art products, Motorola expects to record strong demand across video security and services, LMR products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations.
The Zacks Consensus Estimate for the Products and Systems Integration segment’s revenues is pegged at $1,038 million. The figure indicates a rise from $1,015 million recorded in the year-ago quarter.
The consensus estimate for Services and Software revenues is $793 million, which indicates growth from the year-ago figure of $758 million. The performance is likely to have been driven by command center software and services along with growth in LMR services.
For the March quarter, the Zacks Consensus Estimate for revenues is pegged at $1,832 million, which indicates growth from the year-ago quarter’s reported figure of $1,773 million. The consensus estimate for adjusted earnings per share is pegged at $1.58, which suggests a decrease from $1.87 recorded in the prior-year quarter owing to high operating expenses.
Q1 Developments
During the quarter, Motorola expanded its Managed & Support Services business globally with the acquisition of TETRA Ireland Communications Limited. TETRA Ireland offers voice and data LMR communications to first responders and frontline workers from national security and enforcement agencies, health and emergency services and state utilities. The network is powered by Motorola’s TETRA digital radio technology. Post-acquisition, it aims to continue providing interoperable communications for Ireland’s emergency and public service agencies.
Earnings Whispers
Our proven model does not predict an earnings beat for Motorola in the first quarter. 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%, with both pegged at $1.58. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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 The Walt Disney Company (DIS - Free Report) is +3.87% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on May 11.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +2.57% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 25.
Image: Bigstock
Will Modest Top-Line Growth Buoy Motorola (MSI) Q1 Earnings?
Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report first-quarter 2022 results on May 12, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 4%. It pulled off a trailing four-quarter earnings surprise of 9.4%, on average.
The Chicago, IL-based company is expected to have recorded year-over-year higher revenues on the back of growth in both segments — Products and Systems Integration, and Services and Software. It benefits from the increasing demand for its mission-critical technologies in North America and globally.
Factors at Play
During the quarter, Motorola secured a $29 million contract extension from the U.S. Department of Defense to bolster mission-critical communications infrastructure in the first-responder community in the U.S. Navy. The deal reinforces its competitive position in the public safety ecosystem and extends the operations of the Land Mobile Radio (LMR) network of the naval community. It will leverage its much-acclaimed P25 trunked network to strengthen the deployment of LMR communication for easier access, enhanced coverage and stronger security in the Navy. The company also secured a prime contract from MetrôRio to provide VB400 body-worn cameras for the safety and security of employees and passengers across the rail network of Brazil.
In the first quarter, Motorola unveiled Curve Wi-Fi enhanced business radio with voice assistance capabilities to support retail, hospitality and restaurant operations. Curve has been designed to enable quick push-to-talk radio communications in busy environments and Wi-Fi for voice assistance. The company also collaborated with Indyme Solutions, a global leader in customer engagement, loss prevention and workflow automation in the retail industry. The collaboration allows Curve to be integrated with Indyme’s customer engagement and loss prevention systems to respond quickly to incidents.
Riding on such state-of-the-art products, Motorola expects to record strong demand across video security and services, LMR products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations.
The Zacks Consensus Estimate for the Products and Systems Integration segment’s revenues is pegged at $1,038 million. The figure indicates a rise from $1,015 million recorded in the year-ago quarter.
The consensus estimate for Services and Software revenues is $793 million, which indicates growth from the year-ago figure of $758 million. The performance is likely to have been driven by command center software and services along with growth in LMR services.
For the March quarter, the Zacks Consensus Estimate for revenues is pegged at $1,832 million, which indicates growth from the year-ago quarter’s reported figure of $1,773 million. The consensus estimate for adjusted earnings per share is pegged at $1.58, which suggests a decrease from $1.87 recorded in the prior-year quarter owing to high operating expenses.
Q1 Developments
During the quarter, Motorola expanded its Managed & Support Services business globally with the acquisition of TETRA Ireland Communications Limited. TETRA Ireland offers voice and data LMR communications to first responders and frontline workers from national security and enforcement agencies, health and emergency services and state utilities. The network is powered by Motorola’s TETRA digital radio technology. Post-acquisition, it aims to continue providing interoperable communications for Ireland’s emergency and public service agencies.
Earnings Whispers
Our proven model does not predict an earnings beat for Motorola in the first quarter. 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%, with both pegged at $1.58. 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 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:
Ciena Corporation (CIEN - Free Report) is set to release quarterly numbers on Jun 2. It has an Earnings ESP of +6.91% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for The Walt Disney Company (DIS - Free Report) is +3.87% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on May 11.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +2.57% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 25.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.