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Sep 26, 2020

Motorola Q3 2020 Earnings Report

Reported a decrease in revenue but growth in software and services segment.

Key Takeaways

Motorola Solutions reported Q3 2020 financial results with a revenue of $1.9 billion, a 6% decrease compared to the previous year. The Software and Services segment grew by 9%, and the company was awarded a $120M+ next-generation 911 multi-year contract.

Revenue was $1.9 billion, down 6% year-over-year.

Software and Services segment grew 9% with expanded operating margins.

GAAP earnings per share (EPS) was $1.18.

Generated $343 million of free cash flow.

Total Revenue
$1.87B
Previous year: $1.99B
-6.3%
EPS
$1.95
Previous year: $2.04
-4.4%
Backlog
$10.7B
Operating Margin
18.9%
Previous year: 20.7%
-8.7%
Effective Tax Rate
18%
Previous year: 23%
-21.7%
Gross Profit
$909M
Previous year: $1.01B
-9.7%
Cash and Equivalents
$1.01B
Previous year: $1.14B
-11.5%
Free Cash Flow
$343M
Total Assets
$10.4B
Previous year: $10.4B
-0.1%

Motorola

Motorola

Motorola Revenue by Segment

Forward Guidance

Motorola Solutions expects a revenue decline of (6%) to (5.5%) for the fourth quarter of 2020 compared to the fourth quarter of 2019. The company expects non-GAAP earnings per share in the range of $2.71 to $2.76.

Revenue & Expenses

Visualization of income flow from segment revenue to net income