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Sep 30, 2023
Motorola Q3 2023 Earnings Report
Motorola Solutions reported strong Q3 2023 results, with record third-quarter revenue, earnings, and cash flow, leading the company to raise its full-year revenue and earnings outlook.
Key Takeaways
Motorola Solutions reported an 8% increase in sales, reaching $2.6 billion, driven by growth in both Software and Services (up 12%) and Products and Systems Integration (up 5%). GAAP EPS increased by 66% to $2.70, while non-GAAP EPS rose by 6% to $3.19. The company's operating cash flow increased to $714 million, and it achieved a record Q3 ending backlog of $14.3 billion.
Sales increased by 8% year-over-year to $2.6 billion, with Software and Services up 12% and Products and Systems Integration up 5%.
GAAP EPS increased by 66% year-over-year to $2.70, and non-GAAP EPS increased by 6% year-over-year to $3.19.
Operating cash flow increased to $714 million, up from $388 million in the year-ago quarter.
Record Q3 ending backlog of $14.3 billion, up 6% year-over-year.
Motorola
Motorola
Motorola Revenue by Segment
Revenue by Segment
Products & Integration Revenue
CapyFin.comSoftware & Services Revenue
CapyFin.com Forward Guidance
The company expects revenue growth of approximately 4% for the fourth quarter of 2023, compared to the fourth quarter of 2022. The company expects non-GAAP EPS in the range of $3.60 to $3.65 per share. For the full year 2023, the company now expects revenue in the range of $9.930 billion to $9.945 billion, and non-GAAP EPS of between $11.65 and $11.70 per share.
Positive Outlook
- Revenue growth of approximately 4% is expected for Q4 2023.
- Non-GAAP EPS is projected to be in the range of $3.60 to $3.65 per share for Q4 2023.
- Full-year 2023 revenue is expected to be in the range of $9.930 billion to $9.945 billion.
- Full-year 2023 non-GAAP EPS is projected to be between $11.65 and $11.70 per share.
- Anticipated benefits from pricing adjustments to mitigate inflationary pressures.
Challenges Ahead
- Assumes approximately 171 million fully diluted shares for Q4 2023.
- Assumes a non-GAAP effective tax rate of approximately 24% for Q4 2023.
- Assumes approximately $40 million in foreign exchange headwinds for full year 2023.
- Assumes approximately 172 million fully diluted shares for full year 2023.
- Assumes a non-GAAP effective tax rate of approximately 23% for full year 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income