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Jun 29, 2024

Motorola Q2 2024 Earnings Report

Motorola Solutions reported strong Q2 2024 results, with increased revenue and earnings, and raised full-year outlook.

Key Takeaways

Motorola Solutions reported an excellent second quarter with strong growth in all three technologies, achieving record Q2 sales of $2.6 billion, up 9% year-over-year, and GAAP earnings per share of $2.60, up 21% year-over-year. The company raised its full-year revenue and earnings expectations due to strong business momentum.

Sales were $2.6 billion, up 9% versus a year ago.

GAAP earnings per share was $2.60, up 21% versus a year ago

Non-GAAP EPS was $3.24, up 22% versus a year ago

Operating cash flow was $180 million, up $87 million versus a year ago

Total Revenue
$2.63B
Previous year: $2.4B
+9.4%
EPS
$3.24
Previous year: $2.65
+22.3%
Backlog
$14B
Previous year: $14.3B
-2.1%
Operating Margin
24.5%
Previous year: 21.6%
+13.4%
Effective Tax Rate
23.3%
Previous year: 23.4%
-0.4%
Gross Profit
$1.34B
Previous year: $1.19B
+12.6%
Cash and Equivalents
$1.38B
Previous year: $710M
+94.5%
Free Cash Flow
$112M
Previous year: $40M
+180.0%
Total Assets
$13.3B
Previous year: $12.3B
+8.9%

Motorola

Motorola

Motorola Revenue by Segment

Forward Guidance

The company expects revenue growth between 7% and 8% compared to the third quarter of 2023. The company expects non-GAAP EPS in the range of $3.32 to $3.37 per share. For the full year 2024, the company now expects revenue growth of approximately 8% and non-GAAP EPS of between $13.22 and $13.30 per share.

Positive Outlook

  • Revenue growth between 7% and 8% compared to Q3 2023
  • Non-GAAP EPS in the range of $3.32 to $3.37 per share for Q3 2024
  • Full-year 2024 revenue growth of approximately 8%
  • Full-year 2024 non-GAAP EPS of between $13.22 and $13.30 per share
  • Assumes approximately 171 million fully diluted shares and a non-GAAP effective tax rate of approximately 23.5% for full year

Challenges Ahead

  • Guidance has not been quantitatively reconciled for forward-looking non-GAAP metrics to their most comparable GAAP measures
  • The company does not provide specific guidance for the various reconciling items as certain items that impact these measures have not occurred, are out of the company’s control, or cannot be reasonably predicted.
  • A reconciliation to the most comparable GAAP financial metric is not available without unreasonable effort.
  • The unavailable reconciling items could significantly impact the company’s results.
  • Guidance assumes approximately 170 million fully diluted shares and a non-GAAP effective tax rate of approximately 24% for Q3 2024

Revenue & Expenses

Visualization of income flow from segment revenue to net income