The chart below shows how MSI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MSI sees a -1.09% change in stock price 10 days leading up to the earnings, and a +3.73% change 10 days following the report. On the earnings day itself, the stock moves by +0.03%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record EPS Achievement: Motorola Solutions, Inc. reported a record EPS of $4.04, exceeding expectations of $3.89, indicating strong financial performance.
Record Revenue Achievement: The company achieved record revenue in both segments and all three technologies, with double-digit growth in video and command center, showcasing the strength of its safety and security ecosystem.
Revenue Increase Overview: Full-year revenue increased by 8% to $10.8 billion, driven by growth in both segments and across all technologies, reflecting robust demand for its solutions.
Record Operating Cash Flow: Operating cash flow for the year reached a record $2.4 billion, up 17% year-over-year, demonstrating effective cash generation and operational efficiency.
Operating Margin Expansion: Motorola Solutions expanded its operating margins by 380 basis points in the product and SI segment, attributed to a favorable mix of feature-rich devices and lower material costs.
Strategic Acquisitions for Growth: The company made four acquisitions in its video and command center technologies, enhancing its safety and security offerings and positioning for future growth.
Record Backlog Growth: The backlog at the end of Q4 was a record $14.7 billion, up $438 million year-over-year, indicating strong future revenue potential.
Projected Revenue Growth: The company expects continued robust demand in 2025, with projected revenue growth of approximately 5.5% and non-GAAP EPS between $14.64 and $14.74, reflecting confidence in its business outlook.
Negative
International Revenue Decline: Revenue growth in international markets was down 3% in Q4, primarily due to lower revenue from Ukraine and the exit from ESN, indicating challenges in global expansion.
Operating Expenses Increase: Operating expenses increased by $197 million for the full year, driven by higher employee incentives, acquisition-related expenses, and legal costs, which could impact future profitability.
Software Segment Margin Decline: Operating margins in the software and services segment decreased by 310 basis points compared to the prior year, primarily due to the AirWave charge control and higher expenses from acquisitions, suggesting potential inefficiencies or integration challenges.
Earnings Per Share Decline: GAAP earnings per share decreased from $9.93 in the prior year to $9.23, primarily due to a significant pretax loss related to the Silver Lake convertible notes, indicating financial volatility.
Backlog Decrease Analysis: The backlog in the products and systems integration segment decreased by $858 million, suggesting a potential slowdown in demand or fulfillment issues in that area.
Motorola Solutions, Inc. (NYSE:MSI) Q4 2024 Earnings Call Transcript
MSI.N
0.36%