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Oct 01, 2022

Motorola Q3 2022 Earnings Report

Motorola Solutions reported strong Q3 results, raising full-year revenue and earnings outlook.

Key Takeaways

Motorola Solutions reported Q3 2022 financial results with sales of $2.4 billion, up 13% versus a year ago. GAAP EPS was $1.63, down 7% from a year ago, while non-GAAP EPS was $3.00, up 28% versus a year ago. The company raised its full-year revenue and earnings outlook.

Sales of $2.4 billion, up 13% versus a year ago.

Products and Systems Integration sales up 15%.

Software and Services sales up 8%.

Record Q3 ending backlog of $13.5 billion, up 19% versus a year ago.

Total Revenue
$2.37B
Previous year: $2.11B
+12.6%
EPS
$3
Previous year: $2.35
+27.7%
Operating Margin
15.7%
Previous year: 21.4%
-26.6%
Effective Tax Rate
15.9%
Previous year: 24%
-33.8%
Gross Profit
$1.03B
Previous year: $1.05B
-1.3%
Cash and Equivalents
$822M
Previous year: $1.65B
-50.3%
Free Cash Flow
$318M
Previous year: $315M
+1.0%
Total Assets
$11.6B
Previous year: $11.4B
+1.8%

Motorola

Motorola

Motorola Revenue by Segment

Forward Guidance

The company expects revenue growth of approximately 9% for the fourth quarter of 2022, compared to the fourth quarter of 2021, and non-GAAP EPS in the range of $3.40 to $3.45 per share. For the full year 2022, the company now expects revenue growth of between 9.25% and 9.5%, and non-GAAP EPS of between $10.17 and $10.22 per share.

Challenges Ahead

  • Assumes approximately $90 million in foreign exchange headwinds for Q4 2022.
  • Assumes approximately 172 million fully diluted shares for Q4 2022.
  • Assumes an effective tax rate of approximately 23% for Q4 2022.
  • Assumes approximately $220 million in foreign exchange headwinds for full year 2022.
  • Assumes approximately 172 million fully diluted shares for full year 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income