© Reuters. Motorola (MSI) experiences strong FQ4 earnings, analyst raises value goal
Motorola Options (NYSE:) reported better-than-anticipated earnings for the fiscal fourth quarter, however income got here in barely under estimates.
The telecom tools maker’s shares dropped 2.5% in after-hours buying and selling Thursday.
For FQ4, Motorola reported an EPS of $3.90, beating the estimated $3.64. The corporate’s quarterly income was $2.8 billion, barely under the consensus estimate of $2.82 billion.
The agency’s Merchandise and Methods Integration Section reported gross sales of $1.89 billion, marking a 4.4% year-over-year improve and surpassing the estimated $1.85 billion.
The Software program and Companies Section achieved gross sales of $958 million, a 6.9% improve YoY, assembly the consensus projection.
Motorola’s gross margin reached 51.1%, an enchancment from 49.9% the earlier 12 months and better than the anticipated 50.7%.
Looking forward to the primary quarter, the corporate expects EPS to be within the vary of $2.50 to $2.55, which is forward of the consensus estimate of $2.37.
For the complete 12 months 2024, it guided EPS to vary from $12.62 to $12.71, in comparison with $12.68 anticipated by analysts.
“The sturdy development we achieved displays the continued strong demand for our security and safety options that assist defend folks, property, and locations,” the corporate mentioned in an announcement.
Commenting on the report, Jefferies analysts mentioned “enterprise is firing on all cylinders,” reiterating its Purchase score on the inventory and elevating the goal value from $335 to $375.
“Additional, we proceed to see important new catalysts with Federal stimulus {dollars} coming into MSI’s gross sales funnel. Different alternatives embrace ongoing development in Video, Command Heart Software program, and Companies in addition to the normal PCR/LMR companies,” they mentioned.