Motorola Solutions Inc (MSI) Reports 8% Sales Growth in Q3 2023
Motorola Solutions Inc (NYSE:MSI) reported Q3 2023 sales of $2.6 billion, marking an 8% increase from the previous year.
GAAP earnings per share (EPS) stood at $2.70, up 66% year-over-year (YoY).
Operating cash flow was $714 million, up $326 million YoY.
Record Q3 ending backlog of $14.3 billion, up 6% YoY.
Motorola Solutions Inc (NYSE:MSI) released its Q3 2023 earnings report on November 2, 2023, showcasing robust growth across key financial metrics. The company reported sales of $2.6 billion, marking an 8% increase compared to the same period last year. The Software and Services segment saw a 12% sales increase, while the Products and Systems Integration segment experienced a 5% sales growth.
Financial Highlights
Motorola Solutions Inc (NYSE:MSI) reported GAAP earnings per share (EPS) of $2.70, a significant 66% increase from the previous year. The non-GAAP EPS stood at $3.19, marking a 6% YoY increase. The company generated $714 million of operating cash flow, up $326 million compared to the same period last year. The Q3 ending backlog reached a record $14.3 billion, a 6% YoY increase.
Segment Performance
The Products and Systems Integration segment reported sales of $1.6 billion, a 5% increase from the previous year. The GAAP operating earnings for this segment were $364 million, marking a 20% YoY increase. The Software and Services segment reported sales of $944 million, a 12% increase from the previous year. The GAAP operating earnings for this segment were $275 million, a significant 293% YoY increase.
Notable Wins and Achievements
Motorola Solutions Inc (NYSE:MSI) reported several notable wins and achievements in Q3 2023, including a $23M LMR service agreement for a large European customer, a $20M LMR service agreement for the Los Angeles Police Department, and a $75M P25 device order for a U.S. federal customer.
Business Outlook
For Q4 2023, the company expects revenue growth of approximately 4% compared to Q4 2022. The non-GAAP EPS is expected to be in the range of $3.60 to $3.65 per share. For the full year 2023, the company now expects revenue in the range of $9.930 billion to $9.945 billion, up from its prior guidance of $9.875 billion to $9.900 billion. The non-GAAP EPS is expected to be between $11.65 and $11.70 per share, up from its prior guidance of between $11.40 and $11.48 per share.
Recent Events
Motorola Solutions Inc (NYSE:MSI) continues to navigate disruptions in its supply chain due to the ongoing COVID-19 pandemic. The company has taken pricing actions to mitigate its exposure to inflationary pressures and expects to continue benefiting from these adjustments in Q4 2023. The company is also actively managing its inventory to enable continuity of supply and services to its customers.
Explore the complete 8-K earnings release (here) from Motorola Solutions Inc for further details.
This article first appeared on GuruFocus.
