•
Dec 31, 2019

Motorola Q4 2019 Earnings Report

Reported record sales, cash flow, and backlog, bolstered by strong fourth-quarter results.

Key Takeaways

Motorola Solutions reported a 5% increase in revenue to $2.4 billion, driven by strength in the Americas. GAAP EPS was $1.39, including a $1.53 non-cash charge. Non-GAAP EPS was $2.94, up 12%. The company generated $795 million in operating cash flow and ended the quarter with a record backlog of $11.3 billion.

Revenue of $2.4 billion, up 5% from Q4 in the prior year.

Record backlog of $11.3 billion, up $659 million or 6% from a year ago.

GAAP earnings per share (EPS) of $1.39, inclusive of a $1.53 per share non-cash charge related to US pension de-risking.

Non-GAAP EPS of $2.94, up 12%.

Total Revenue
$2.38B
Previous year: $2.25B
+5.5%
EPS
$2.94
Previous year: $2.63
+11.8%
Backlog
$11.3B
Previous year: $10.6B
+6.2%
Operating Margin
24.8%
Effective Tax Rate
-26.4%
Gross Profit
$1.22B
Previous year: $1.09B
+12.1%
Cash and Equivalents
$1B
Previous year: $1.26B
-20.4%
Free Cash Flow
$736M
Total Assets
$10.6B
Previous year: $9.41B
+13.1%

Motorola

Motorola

Motorola Revenue by Segment

Forward Guidance

The Company expects revenue growth of approximately 2% compared with the first quarter of 2019. The company expects non-GAAP earnings per share in the range of $1.30 to $1.35 per share. For full year 2020, the company expects revenue growth of approximately 4% and non-GAAP earnings per share in the range of $8.65 to $8.80 per share.

Positive Outlook

  • Expects revenue growth of approximately 2% compared with the first quarter of 2019.
  • Expects non-GAAP earnings per share in the range of $1.30 to $1.35 per share for Q1 2020.
  • Assumes current foreign exchange rates for Q1 2020.
  • Assumes approximately 176 million fully diluted shares for Q1 2020.
  • Assumes a 20% effective tax rate for Q1 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income