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Motorola (MSI) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Analysts on Wall Street project that Motorola (MSI - Free Report) will announce quarterly earnings of $3.36 per share in its forthcoming report, representing an increase of 5.3% year over year. Revenues are projected to reach $2.76 billion, increasing 7.9% from the same quarter last year.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

In light of this perspective, let's dive into the average estimates of certain Motorola metrics that are commonly tracked and forecasted by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Net sales- Products and Systems Integration' of $1.76 billion. The estimate indicates a year-over-year change of +9%.

The combined assessment of analysts suggests that 'Net sales- Software and Services' will likely reach $996.61 million. The estimate indicates a change of +5.6% from the prior-year quarter.

Analysts predict that the 'Net sales from products' will reach $1.62 billion. The estimate indicates a year-over-year change of +8.6%.

Analysts' assessment points toward 'Net sales from services' reaching $1.13 billion. The estimate indicates a change of +6.2% from the prior-year quarter.

According to the collective judgment of analysts, 'Non-GAAP Operating Earnings- Software and Services Segment' should come in at $308.91 million. The estimate compares to the year-ago value of $321 million.

It is projected by analysts that the 'Non-GAAP Operating Earnings- Products and Systems Integration Segment' will reach $484.99 million. Compared to the current estimate, the company reported $420 million in the same quarter of the previous year.

View all Key Company Metrics for Motorola here>>>

Shares of Motorola have experienced a change of +0.8% in the past month compared to the +0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), MSI is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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