Are You Ready To Experience The Wonders of: Motorola Solutions, Inc. (NYSE: MSI)
On 14 Nov 2019, Motorola Solutions, Inc. (NYSE: MSI) spotted trading -11.27% off 52-week high price. On the other end, the stock has been noted 49.41% away from the low price over the last 52-weeks. The stock changed 0.09% to recent value of $161.74. The stock transacted 658747 shares during most recent day however it has an average volume of 1178.91K shares. The company has 168.47M of outstanding shares and 168.47M shares were floated in the market.
Motorola Solutions, Inc. (MSI) recently stated its earnings results for the third quarter of 2019.
“Q3 was another excellent quarter of revenue growth and cash generation,” stated Greg Brown, chairman and CEO of Motorola Solutions. “Our ending backlog and continued strong business performance position us well to finish the year with record sales, earnings and cash flow.”
OTHER SELECTED FINANCIAL RESULTS
- Revenue -Sales were $2.0B, up $132M, or 7% from the year-before quarter, driven by growth in the Americas. Revenue from acquisitions was $58M, and currency headwinds were $21M in the quarter. The Products and Systems Integration section grew 5%, and the Services and Software section grew 12%. Both sections were driven by growth in the Americas, partially offset by unfavorable currency rates.
- Operating margin– GAAP operating margin was 20.7% of sales, up from 15.8% in the year-before quarter. The improvement was primarily Because of higher sales and gross margin in the current year, as well as costs related to a raise to an existing environmental reserve booked in the previous year, partially offset by higher operating expenses related to acquisitions. Non-GAAP operating margin was 25.5% of sales, up from 24.3% in the year-before quarter Because of higher sales and gross margin, partially offset by higher operating expenses related to acquisitions.
- Taxes– The GAAP effective tax rate was 23%, contrast with 8% in the year-before quarter. The non-GAAP effective tax rate was 23% contrast with 18% in the year-before quarter. Both the GAAP and non-GAAP tax rates were higher in the current year Because of the recognition of favorable return-to- provision adjustments in the previous year.
- Cash flow– Operating cash flow was $525M, contrast with $338M in the year-before quarter. Free cash flow was $465M, contrast with $292M in the year-before quarter. Cash flow for the quarter increased year over year primarily Because of improved working capital, a settlement payment in the previous year related to a legacy business, and higher earnings.
- Capital allocation– During the quarter, the company paid $271M in cash and equity to acquire WatchGuard Inc., paid $94M in cash dividends, and incurred $60M of capital expenditures. Additionally, we extended our planned joint venture with Silver Lake with a new $1B five-year convertible note. In exchange, we settled the outstanding $800M note with 5.5M shares and $1.1B in cash, of which $600M was paid subsequent to quarter-end. The transaction resulted in an overall reduction to our diluted share count in the quarter. The company also paid off the $400M term loan used to acquire Avigilon.
- Backlog-The company ended the quarter with backlog of $11.0B, up $1.6B from the year-before quarter. Services and Software backlog was up 26% or $1.6BBecause of growth in EMEA and the Americas. Products and Systems Integration section backlog was down 1% or $39M primarilyBecause of two large system deployments in the Middle East and Africa in the previous year, partially offset by growth in the Americas.
NOTABLE WINS
Services and Software
- $78M P25 multi-year service contract with State of Michigan, extending service through 2029
- $58M P25 multi-year statewide service contract in North America
- $11M command center software suite contract with Glendale, Arizona
- $4M for a 911 system in Bogota, Colombia
Products and Systems Integration
- The largest Canadian P25 award in history serving the province of Ontario
- $27M in video security wins in education
- $16M P25 order from Lee County, Florida
- Several large awards in mobile and in-car video including $13M for city of Nashville, Tennessee and $4M for the Michigan State Police
- $3M in fixed video security wins for government consumers
BUSINESS OUTLOOK
- Fourth-quarter 2019– Motorola Solutions expects revenue growth of 5% to 5.5% contrast with the fourth quarter of 2018. The company expects non-GAAP earnings per share in the range of $2.75 to $2.80. This assumes current foreign exchange rates, about 176M fully diluted shares and an effective tax rate of about 25%.
- Full-year2019 – The company now expects revenue growth of 7.25% to 7.5%. The company now expects non-GAAP earnings per share in the range of $7.77 to $7.82, up from the previous guidance of $7.67 to $7.77. This assumes current foreign exchange rates, about 176M fully diluted shares and an effective tax rate of about 23.5%.
Its earnings per share (EPS) expected to touch remained 23.20% for this year while earning per share for the next 5-years is expected to reach at 9.59%. MSI has a gross margin of 48.90% and an operating margin of 18.50% while its profit margin remained 13.50% for the last 12 months. According to the most recent quarter its current ratio was 1.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -2.15% from the mean of 20 days, -3.35% from mean of 50 days SMA and performed 2.99% from mean of 200 days price. Company’s performance for the week was -0.28%, -6.38% for month and YTD performance remained 40.59%.
Willard Shelton – Technology
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