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Motorola
🇺🇸 NYSE:MSI
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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.

Total Revenue
$2.56B
Previous year: $2.37B
+7.7%
EPS
$3.19
Previous year: $3
+6.3%
Backlog
$14.3B
Operating Margin
25%
Previous year: 15.7%
+59.2%
Effective Tax Rate
21.5%
Previous year: 15.9%
+35.2%
Gross Profit
$1.28B
Previous year: $1.03B
+24.2%
Cash and Equivalents
$910M
Previous year: $822M
+10.7%
Free Cash Flow
$649M
Previous year: $318M
+104.1%
Total Assets
$12.4B
Previous year: $11.6B
+7.0%

Motorola

Motorola

Motorola Revenue by Segment

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

Company Overview

Full financial data and analysis

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