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Chicago-based Motorola Solutions, Inc. (MSI) operates in the communication equipment industry and provides public safety and enterprise security solutions. With a market cap of $70.3 billion, Motorola operates through Products and Systems Integration and Software and Services segments.
The tech giant is expected to announce its first-quarter earnings on Thursday, May 1. Ahead of the event, analysts expect MSI to deliver an adjusted EPS of $2.72, up 6.3% from $2.56 reported in the year-ago quarter. The company has a robust earnings surprise history and has surpassed the Street’s bottom-line estimates in each of the past four quarters.
For the full fiscal 2025, analysts expect MSI to report an adjusted EPS of $13.49, up nearly 6% from $12.73 reported in fiscal 2024. In fiscal 2026, its earnings are expected to further surge 8.1% year-over-year to $14.58 per share.
MSI stock prices have soared 23.6% over the past 52 weeks, significantly outpacing the Technology Select Sector SPDR Fund’s (XLK) 3% dip and the S&P 500 Index’s ($SPX) 5.4% uptick during the same time frame.
However, MSI stock prices dropped nearly 6% in the trading session after the release of its mixed fiscal 2024 results on Feb. 13. While the company’s overall topline for the year increased 8% year-over-year to $10.8 billion, its non-GAAP operating margins observed a slight decline due to its acquisitions. Furthermore, its GAAP earnings dropped nearly 7% year-over-year to $9.23 per share.
On a more positive note, the company’s backlog at the end of the year stood at $14.7 billion, marking an increase of $438 million from fiscal 2023. Moreover, MSI delivered a 17% year-over-year growth in operating cash flows, reaching a record $2.4 billion and generated $2.1 billion in free cash flow, up 19% from the prior year.
The consensus view on MSI stock is moderately optimistic, with a “Moderate Buy” rating overall. Of the 11 analysts covering the stock, seven recommend “Strong Buy,” one advises “Moderate Buy,” and three advocate a “Hold” rating. Its mean price target of $522.12 suggests a 24% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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