Motorola Solutions inches up earnings guidance after record revenues, operating profit in Q1

Motorola Solutions reported higher-than-expected results for the first quarter, with revenues, the operating profit and the ending backlog hitting record highs. CEO Greg Brown said the company was well positioned for this year, with continued demand across all of its platforms. Revenues for the quarter rose 13 percent from the year before to USD 1.7 billion while the operating profit jumped 34 percent to USD 229 million. Earnings per share advanced 25 percent to USD 0.86, adjusted EPS lifted 16 percent to USD 1.28 and the operating cash flow slipped to USD 251 million from 500 million while the free cash flow fell to USD 185 million from 541 million, on the back higher pension contributions, higher earnings and improved working capital. 

Revenues were again boosted by growth in the Americas and EMEA, at both of the company’s segments. Revenue went 12 percent higher to USD 1.069 billion at Products and Systems Integration and up 14 percent to USD 588 million. 

The company ended the quarter with a backlog of USD 10.4 million, up by USD 781 million year-on-year. At Services and Software, the backlog was up 14 percent due to growth in EMEA and the Americas. At Products and Systems Integration, backlog weakened 3 percent due to large projects in the Middle East and Africa the year before, partially offset by growth in the Americas. 

For the second quarter, Motorola sees revenues up 4-5 percent year-on-year, with adjusted EPS at USD 1.55-1.60. For the full year, the company reiterated its guidance for revenues up 6-7 percent and tightened up its forecast for adjusted EPS, now at USD 7.60-7.72, from its previous guidance of 7.55-7.70.