Motorola Q1 2022 Earnings Report
Key Takeaways
Motorola Solutions reported a strong start to the year with record first-quarter orders, sales, and ending backlog. Sales reached $1.9 billion, a 7% increase year-over-year, driven by growth in both Products and Systems Integration and Software and Services segments. The company closed acquisitions of Ava Security and TETRA Ireland.
Sales of $1.9 billion, up 7% versus a year ago.
GAAP earnings per share (EPS) of $1.54.
Record Q1 ending backlog of $13.4 billion, up 19% versus a year ago.
Closed the acquisitions of Ava Security and TETRA Ireland.
Motorola
Motorola
Motorola Revenue by Segment
Forward Guidance
The company expects revenue growth of 4% to 5% compared to the second quarter of 2021 and expects non-GAAP EPS in the range of $1.83 to $1.88 per share for the second quarter of 2022. The company is maintaining its prior guidance of 7% revenue growth and non-GAAP EPS guidance of between $9.80 and $9.95 per share for the full year 2022.
Positive Outlook
- Pricing actions
- Targeted cost reductions
- Favorable mix for LMR products
- Higher operating margins in the second half of the year
- Ongoing sources of government funding.
Challenges Ahead
- $50 million in foreign exchange headwinds for Q2 2022
- 173 million fully diluted shares assumed for Q2 2022
- Effective tax rate of 22% to 23% assumed for Q2 2022
- $170 million in foreign exchange headwinds for full year 2022
- Effective tax rate of 21% to 21.5% assumed for full year 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income