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Dec 31, 2022

Motorola Q4 2022 Earnings Report

Motorola Solutions reported record Q4 and full-year sales, earnings per share, and backlog.

Key Takeaways

Motorola Solutions reported a strong Q4 2022, with sales up 17% to $2.7 billion and EPS up 49% to $3.43. The company achieved record sales, operating earnings, earnings per share, and cash flow. The company also ended the year with a record backlog of $14.3 billion, up $788 million from the prior year.

Sales of $2.7 billion, up 17% from Q4 in the prior year.

Record backlog of $14.3 billion, up $788 million or 6% versus a year ago.

Generated record $1.3 billion of operating cash flow in Q4.

GAAP Q4 earnings per share (EPS) of $3.43, up 49% versus a year ago.

Total Revenue
$2.71B
Previous year: $2.32B
+16.6%
EPS
$3.6
Previous year: $2.85
+26.3%
Backlog
$14.3B
Previous year: $13.6B
+5.1%
Operating Margin
25.6%
Previous year: 23.7%
+8.0%
Effective Tax Rate
11%
Previous year: 22.4%
-50.9%
Gross Profit
$1.35B
Previous year: $1.18B
+14.2%
Cash and Equivalents
$1.33B
Previous year: $1.87B
-29.3%
Free Cash Flow
$1.2B
Previous year: $635M
+89.0%
Total Assets
$12.8B
Previous year: $12.2B
+5.1%

Motorola

Motorola

Motorola Revenue by Segment

Forward Guidance

The company expects revenue growth between 12% and 13% compared to the first quarter of 2022. The company expects non-GAAP earnings per share in the range of $2.02 to $2.07 per share. For full year 2023, the company expects revenue in the range of $9.65 billion to $9.7 billion and non-GAAP earnings per share in the range of $11.10 to $11.22 per share.

Challenges Ahead

  • Assumes approximately $40 million in foreign exchange headwinds.
  • Assumes approximately 172 million fully diluted shares.
  • Assumes an effective tax rate of approximately 23%.
  • The company has not quantitatively reconciled its guidance for forward-looking non-GAAP measurements in this news release to their most comparable GAAP measurements because the company does not provide specific guidance for the various reconciling items as certain items that impact these measures have not occurred, are out of the company’s control, or cannot be reasonably predicted.
  • The strong U.S. dollar negatively impacted cash generated from the company's foreign operations in 2022, driven by revenues and costs that are denominated in foreign currencies.

Revenue & Expenses

Visualization of income flow from segment revenue to net income