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Motorola Solutions Announces 2Q15 Results, Beats Expectations

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Dec. 4 2020, Updated 10:53 a.m. ET

2Q15 Results

On August 5, 2015, Motorola Solutions (MSI) announced its 2Q15 results and reported revenues of $1.36 billion, a 2% year over year (or YoY) decrease including $53 million of unfavorable foreign currency impact. Gross profit for 2Q15 was $648 million compared to $656 million in 2Q14. Operating income increased 84% YoY from $138 million in 2Q14 to $254 million in 2Q15. While gross margin and operating margin were 47.09% and 9.91% in 2Q14, the same increased to 47.37% and 18.57% respectively in 2Q15.

In comparison, Cisco (CSCO) and Harris Corp. (HRS) have reported revenues of $12.84 billlon and $1.53 billion respectively in the last quarter.

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Net income and EPS

Net income however decreased from $824 million in 2Q14 to $142 million in 2Q15. This huge difference was primarily due to $746 million earned by Motorola in 2Q14 from “discontinued operations”. GAAP (generally accepted accounting principles) earnings per share (or EPS) from continuing operations were $0.68 driven by lower operating expense. Motorola generated $140 million in operating cash flow and $92 million in free cash flow in 2Q15. It was also announced that Silver Lake, a private equity firm will invest $1 billion in Motorola to accelerate growth of smart public safety solutions and services businesses.

“The company delivered double-digit earnings and free cash flow per share growth in the second quarter, driven by strong North America results and improved operating leverage,” said Greg Brown, chairman and CEO of Motorola Solutions. “We believe the partnership with Silver Lake will accelerate growth in our smart public safety solutions and services businesses and represents a strong vote of confidence in our company’s strategy. We also announced our intent to repurchase up to $2 billion of our stock through a tender offer. These steps reflect our confidence in the future value of our business while allowing us to maintain considerable financial flexibility to pursue further growth.”

Motorola Inc. beat analyst revenue estimates of $1.07 billion by $30 million and EPS estimates of $0.54 by $0.14 per share.

You can gain exposure to Motorola Solutions by investing in the Technology Select Sector SPDR Fund (XLK) and the iShares U.S. tech ETF (IYW). Motorola accounts for 0.35% of XLK and 0.39% of IYW.

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