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Motorola
🇺🇸 NYSE:MSI
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Mar 30, 2024

Motorola Q1 2024 Earnings Report

Motorola Solutions reported strong Q1 2024 results, raising full-year revenue and earnings outlook.

Key Takeaways

Motorola Solutions reported a strong first quarter with a 10% increase in sales to $2.4 billion, driven by growth in both Products and Systems Integration and Software and Services segments. The company raised its full-year revenue and earnings outlook following these results.

Sales reached $2.4 billion, a 10% increase year-over-year, with Products and Systems Integration up 14% and Software and Services up 4%.

GAAP earnings per share (EPS) was ($0.23), including a ($3.42) loss from settlement accounting for the Silver Lake convertible debt.

Non-GAAP EPS was $2.81, a 27% increase compared to the previous year.

The company achieved a record Q1 operating cash flow of $382 million, up $390 million year-over-year, and a record ending backlog of $14.4 billion, up 2% year-over-year.

Total Revenue
$2.39B
Previous year: $2.17B
+10.0%
EPS
$2.81
Previous year: $2.22
+26.6%
Backlog
$14.4B
Previous year: $14.1B
+2.1%
Operating Margin
21.7%
Previous year: 18.4%
+17.9%
Effective Tax Rate
57.8%
Previous year: 22.1%
+161.5%
Gross Profit
$1.19B
Previous year: $1.05B
+14.0%
Cash and Equivalents
$1.51B
Previous year: $1.02B
+47.9%
Free Cash Flow
$336M
Previous year: -$62M
-641.9%
Total Assets
$13.3B
Previous year: $12.4B
+7.9%

Motorola

Motorola

Motorola Revenue by Segment

Forward Guidance

The company expects revenue growth between 7% and 8% for the second quarter of 2024, and non-GAAP EPS in the range of $2.97 to $3.02 per share. For the full year 2024, the company now expects revenue growth of approximately 7% and non-GAAP EPS of between $12.98 and $13.08 per share.

Positive Outlook

  • Revenue growth expected between 7% and 8% for Q2 2024.
  • Non-GAAP EPS expected in the range of $2.97 to $3.02 per share for Q2 2024.
  • Full-year 2024 revenue growth expected to be approximately 7%.
  • Full-year 2024 non-GAAP EPS expected to be between $12.98 and $13.08 per share.
  • Assumes approximately 170 million fully diluted shares and a non-GAAP effective tax rate of approximately 24%.

Challenges Ahead

  • Guidance does not quantitatively reconcile forward-looking non-GAAP metrics to their most comparable GAAP measures.
  • Reconciling items could significantly impact the company’s results.
  • Assumes approximately $30 million of foreign exchange headwinds.
  • Assumes a fully diluted share count between 170 million and 171 million shares.
  • Assumes a non-GAAP effective tax rate between 23% and 24%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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