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Will Solid Top-Line Growth Boost Motorola's (MSI) Q2 Earnings?
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Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report second-quarter 2024 results on Aug 1, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 11.51%. It pulled off a trailing four-quarter earnings surprise of 7.54%, on average.
The Chicago-based company is expected to have recorded higher revenues year over year 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, Oakland County has deployed Motorola P25 radio systems to improve public safety and emergency response services in the region. An investment of $61 million was allocated for acquiring more than 6,000 Motorola radios in a bid to replace legacy OpenSky radio systems. This is likely to have generated incremental revenues during the quarter.
In the second quarter, Scotland police have opted to deploy 10,500 VB400 body cameras to improve transparency and accountability in public safety systems across the country. Equipped with a wide angle and 1080 HD lens, the solution is designed to capture high-quality video. Its rugged and intuitive exterior resists rain, snow and dust and seamlessly works in any environment.
The José Joaquín de Olmedo International Airport, in the city of Guayaquil, Ecuador, has opted to deploy Motorola’s AI-powered video security solution, the Avigilon Unity. The AI native video management software with cloud-managed capabilities delivers real-time actionable intelligence, accelerates threat detection and highlights potentially critical events. These developments are expected to have positively impacted its performance in the quarter.
In the quarter under review, Motorola introduced the DIMETRA Connect solution and MXP660 TETRA radio at Critical Communications World 2024. The innovative solutions are designed to address the requirement of robust communications and security for public safety agencies and enterprises. The company also augmented its security portfolio with the launch of VESTA NXT, an advanced AI-enabled 9-1-1 software designed to improve the efficiency of 9-1-1 call handlers and dispatchers. These are likely to be reflected in the upcoming quarterly results.
The Zacks Consensus Estimate for the Products and Systems Integration segment’s revenues is pegged at $1.59 billion. The figure indicates a rise from $1.43 billion recorded in the year-ago quarter. Our estimate for revenues from this segment stands at $1.57 billion, implying 9.7% year-over-year growth. The Zacks Consensus Estimate for the Services and Software segment’s revenues is pegged at $993.86 million, up from $966 million recorded in the year-earlier quarter. Our estimate for revenues from this segment stands at $1 billion, suggesting 4.3% year-over-year growth.
For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $2.59 billion, which indicates growth from the year-ago quarter’s reported figure of $2.40 billion. The consensus estimate for adjusted earnings per share stands at $3.00, which suggests an increase from $2.65, driven by top-line growth.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Motorola in the second 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%. 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 Silicon Motion Technology Corporation (SIMO - Free Report) is +2.32%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
Image: Bigstock
Will Solid Top-Line Growth Boost Motorola's (MSI) Q2 Earnings?
Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report second-quarter 2024 results on Aug 1, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 11.51%. It pulled off a trailing four-quarter earnings surprise of 7.54%, on average.
The Chicago-based company is expected to have recorded higher revenues year over year 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, Oakland County has deployed Motorola P25 radio systems to improve public safety and emergency response services in the region. An investment of $61 million was allocated for acquiring more than 6,000 Motorola radios in a bid to replace legacy OpenSky radio systems. This is likely to have generated incremental revenues during the quarter.
In the second quarter, Scotland police have opted to deploy 10,500 VB400 body cameras to improve transparency and accountability in public safety systems across the country. Equipped with a wide angle and 1080 HD lens, the solution is designed to capture high-quality video. Its rugged and intuitive exterior resists rain, snow and dust and seamlessly works in any environment.
The José Joaquín de Olmedo International Airport, in the city of Guayaquil, Ecuador, has opted to deploy Motorola’s AI-powered video security solution, the Avigilon Unity. The AI native video management software with cloud-managed capabilities delivers real-time actionable intelligence, accelerates threat detection and highlights potentially critical events. These developments are expected to have positively impacted its performance in the quarter.
In the quarter under review, Motorola introduced the DIMETRA Connect solution and MXP660 TETRA radio at Critical Communications World 2024. The innovative solutions are designed to address the requirement of robust communications and security for public safety agencies and enterprises. The company also augmented its security portfolio with the launch of VESTA NXT, an advanced AI-enabled 9-1-1 software designed to improve the efficiency of 9-1-1 call handlers and dispatchers. These are likely to be reflected in the upcoming quarterly results.
The Zacks Consensus Estimate for the Products and Systems Integration segment’s revenues is pegged at $1.59 billion. The figure indicates a rise from $1.43 billion recorded in the year-ago quarter. Our estimate for revenues from this segment stands at $1.57 billion, implying 9.7% year-over-year growth. The Zacks Consensus Estimate for the Services and Software segment’s revenues is pegged at $993.86 million, up from $966 million recorded in the year-earlier quarter. Our estimate for revenues from this segment stands at $1 billion, suggesting 4.3% year-over-year growth.
For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $2.59 billion, which indicates growth from the year-ago quarter’s reported figure of $2.40 billion. The consensus estimate for adjusted earnings per share stands at $3.00, which suggests an increase from $2.65, driven by top-line growth.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Motorola in the second 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%. 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 carries a Zacks Rank #2.
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:
Pinterest (PINS - Free Report) is set to release quarterly numbers on Jul 30. It has an Earnings ESP of +7.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.32%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.