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The telecom equipment maker’s shares dropped 2.5% in after-hours trading Thursday.
For FQ4, Motorola reported an EPS of $3.90, beating the estimated $3.64. The company’s quarterly revenue was $2.8 billion, slightly below the consensus estimate of $2.82 billion.
The firm’s Products and Systems Integration Segment reported sales of $1.89 billion, marking a 4.4% year-over-year increase and surpassing the estimated $1.85 billion.
The Software and Services Segment achieved sales of $958 million, a 6.9% increase YoY, meeting the consensus projection.
Motorola’s gross margin reached 51.1%, an improvement from 49.9% the previous year and higher than the anticipated 50.7%.
Looking ahead to the first quarter, the company expects EPS to be in the range of $2.50 to $2.55, which is ahead of the consensus estimate of $2.37.
For the full year 2024, it guided EPS to range from $12.62 to $12.71, compared to $12.68 expected by analysts.
“The strong growth we achieved reflects the continued robust demand for our safety and security solutions that help protect people, property, and places,” the company said in a statement.
Commenting on the report, Jefferies analysts said “business is firing on all cylinders,” reiterating its Buy rating on the stock and raising the target price from $335 to $375.
“Further, we continue to see significant new catalysts with Federal stimulus dollars entering MSI’s sales funnel. Other opportunities include ongoing growth in Video, Command Center Software, and Services as well as the traditional PCR/LMR businesses,” they said.
