- Motorola Solutions has raised its full-year 2024 revenue and profit forecast to around 8% growth and adjusted EPS of $13.22 to $13.30, exceeding previous projections, on the back of strong demand for its safety and enterprise security services.
- For the third quarter, the company expects revenue growth of 7% to 8% and adjusted EPS of $3.32 to $3.37, both above analysts’ expectations, driving a 1.33% rise in its shares in extended trading.
OUR TAKE
Motorola Solutions’ robust financial performance and upwardly revised forecasts indicate a strong market demand for safety and security services. The company’s critical communications technology is essential for emergency response and security enhancement, positioning it well to capitalise on the growing emphasis on safety. Its focus on innovation and customer needs bolsters its leadership in the sector.
–Vicky Wu, BTW reporter
What happened
Motorola Solutions has raised its full-year revenue and profit forecast, exceeding market expectations, driven by strong demand for its safety and enterprise security services. The company, known for providing critical communications equipment and software services to governments and businesses, now anticipates full-year 2024 revenue growth of about 8% and adjusted earnings per share (EPS) in the range of $13.22 to $13.30. Previously, Motorola forecasted 7% revenue growth and EPS between $12.98 and $13.08.
For the third quarter, Motorola expects revenue growth of 7% to 8%, surpassing analysts’ average estimate of 6.3%. The company forecasts adjusted EPS of $3.32 to $3.37, above the consensus estimate of $3.32. In the quarter ending June 30, Motorola reported revenue of $2.63 billion, beating market estimates of $2.59 billion, and adjusted profit of $3.24 per share, above expectations of $3.01 per share. Motorola’s shares rose 1.33% in extended trading following the announcement.
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Why it’s important
Motorola Solutions’ strong financial performance and upwardly revised forecasts signal robust demand for its safety and security offerings, particularly among government and business clients. The company’s critical communications equipment, including walkie-talkies, video surveillance cameras, and software services, plays a vital role in emergency response and security enhancement. As governments and private entities increasingly prioritise safety and security, Motorola is well-positioned to capitalise on this trend.
“Our second quarter was excellent, with strong growth in all three technologies and record Q2 sales and operating earnings,” said Greg Brown, chairman and CEO, Motorola Solutions. “Our strong ending backlog and business momentum entering the second half of the year position us well for continued growth. As a result, we’re again raising our full-year revenue and earnings expectations.”
The positive outlook reflects the growing importance of safety and security solutions in today’s environment, as well as Motorola’s effective execution in meeting the evolving needs of its customers. With its focus on innovation and customer-centric solutions, Motorola continues to strengthen its position as a leading provider of critical communications technology.
