•
Jul 02, 2022

Motorola Q2 2022 Earnings Report

Reported strong Q2 results with increased full-year revenue and earnings outlook.

Key Takeaways

Motorola Solutions reported exceptional Q2 2022 results, with record second-quarter revenue of $2.1 billion, up 9% year-over-year. The company raised its full-year revenue and earnings outlook due to strong operational execution and a record Q2 ending backlog of $13.4 billion, up 19% year-over-year.

Sales of $2.1 billion, up 9% versus a year ago.

GAAP earnings per share (EPS) of $1.33.

Non-GAAP EPS of $2.07.

Record Q2 ending backlog of $13.4 billion, up 19% versus a year ago.

Total Revenue
$2.14B
Previous year: $1.97B
+8.6%
EPS
$2.07
Previous year: $2.07
+0.0%
Backlog
$13.4B
Previous year: $11.2B
+19.6%
Operating Margin
16.7%
Previous year: 18.8%
-11.2%
Effective Tax Rate
23.7%
Previous year: 13.5%
+75.6%
Gross Profit
$990M
Previous year: $952M
+4.0%
Cash and Equivalents
$717M
Previous year: $1.92B
-62.7%
Free Cash Flow
-$49M
Previous year: $326M
-115.0%
Total Assets
$11.7B
Previous year: $11.1B
+4.9%

Motorola

Motorola

Motorola Revenue by Segment

Forward Guidance

The company expects revenue growth of approximately 10% for the third quarter of 2022, compared to the third quarter of 2021, and non-GAAP EPS in the range of $2.85 to $2.90 per share. For the full year 2022, the company now expects revenue growth of approximately 8% and non-GAAP EPS between $10.03 and $10.13 per share.

Positive Outlook

  • Revenue growth of approximately 10% expected for Q3 2022.
  • Non-GAAP EPS in the range of $2.85 to $2.90 per share expected for Q3 2022.
  • Full-year 2022 revenue growth now expected to be approximately 8%.
  • Full-year 2022 non-GAAP EPS expected to be between $10.03 and $10.13 per share.
  • The company anticipates that the ARPA will continue to have a positive impact throughout the remainder of 2022.

Challenges Ahead

  • Approximately $60 million in foreign exchange headwinds expected in Q3 2022.
  • Assumes approximately 172 million fully diluted shares.
  • An effective tax rate of approximately 20% is assumed.
  • Approximately $170 million in foreign exchange headwinds expected for full year 2022.
  • Supply constraints continue to impact the business and the company expects demand for its products will continue to out-pace its ability to obtain semiconductor component supply throughout 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income