Motorola Solutions forecasts robust Q4 profit on recovering semiconductor market
(Reuters) - Motorola Solutions on Thursday forecast a current-quarter adjusted profit above estimates, as it sees gradual improvements in supply chain availability for procuring certain semiconductor components in a recovering post-pandemic market.
Shares of the provider of safety and enterprise security services rose 1.9% in after-hours trading.
The Chicago-based company expects fourth-quarter adjusted profit of about $3.60 to $3.65 per share. Analysts were expecting $3.57 per share, according to LSEG data.
Motorola's private mobile radio communications network unit, Airwave, was subject to an investigation into the mobile radio network services market by UK's competition regulator, which imposed a price control on the unit. The company's revenue under the Airwave contract has been deferred till the Competition Appeal Tribunal provides an appeal on the price imposition order.
The company provides critical-communications gear like walkie-talkies, video-surveillance cameras, and software services helping communities that the governments and businesses serve during emergency.
The U.S. government and home office of the United Kingdom are the largest customers of Motorola Solutions.
Motorola's revenue for the quarter ended Sept. 30 was $2.6 billion, while adjusted profit was $3.19 per share. Analysts were expecting revenue of $2.53 billion and an adjusted profit of $3.02 per share.
(Reporting by Tanya Jain in Bengaluru; Editing by Shailesh Kuber)
