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Chicago-based Motorola Solutions, Inc. (MSI) operates in the communication equipment industry and provides public safety and enterprise security solutions. With a market cap of $65.1 billion, Motorola operates through Products and Systems Integration, and Software and Services segments. It is expected to announce its Q2 earnings on Thursday, August 1.
Ahead of the events, analysts expect Motorola to report a profit of $2.75 per share, up 14.1% from $2.41 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections over the past four quarters. Its EPS for the last reported quarter grew 30.6% annually to $2.56, exceeding the consensus estimates by 12.8%.
Looking ahead to fiscal 2024, analysts expect Motorola to report an EPS of $12.07, up 9.8% from $10.99 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 8.2% annually to $13.06.
MSI stock is up 25.5% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 18.4% gains and the S&P 500 Technology Sector SPDR’s (XLK) 22.1% returns over the same time frame.
Motorola’s stock rose 5.2% on May 3 following the release of its fiscal Q1 earnings results on May 2. While the company reported a 10% growth in revenues, its net earnings saw a steep decline, resulting in a $39 million loss for the quarter. The company reported a net loss primarily due to loss from the extinguishment of Silver Lake Convertible Debt.
Additionally, the recent acquisitions of Silent Sentinel and IPVideo Corporation have expanded its product offerings. Besides, Motorola has been consistent with its dividend payouts and raised its quarterly dividends for 11 consecutive quarters. On July 15, it paid its shareholders a quarterly dividend of $0.98.
Motorola stock has a consensus “Moderate Buy” rating overall. Out of the 11 analysts covering the stock, seven recommend a “Strong Buy,” one advises a “Moderate Buy,” and the remaining three analysts suggest a “Hold” rating.
Although Motorola is trading above its mean target price of $376.50, the Street-high target of $405 suggests a potential upside of 3.8% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
