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A Look at Motorola Solutions’ Revenues and Profitability

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Revenues expected to rise 5.4% in fiscal 2017

Analysts expect Motorola Solutions’ (MSI) revenues to rise 5.4% YoY (year-over-year) in fiscal 2017 to ~$6.4 billion and 2.5% YoY to ~$6.5 billion in fiscal 2018. The company’s expected revenue growth for 4Q17 is 2.8% YoY while analysts estimated its revenue growth to be 4.4% in 1Q18.

Analysts expect MSI’s non-GAAP[1. generally accepted accounting principles] EPS (earnings per share) to rise 10.0% YoY to $5.40 in fiscal 2017 from $4.92 in fiscal 2016. Its earnings per share are expected to improve to $5.91 in fiscal 2018.

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Operating margin estimated to rise in fiscal 2018

In fiscal 2017, analysts estimated Motorola Solutions’ (MSI) operating margin to reach 24.0% with a net margin of 11.4%. Its operating margin is expected to rise to 24.7% with a net margin of 13.0% in fiscal 2018. Its operating margins could rise to 24.8% with a net margin of 13.6% at the end of fiscal 2019.

As seen in the chart above, MSI’s EBITDA[2. earnings before interest, tax, depreciation, and amortization] could rise from ~$1.2 billion in fiscal 2014 to $1.8 billion in fiscal 2017. Its operating profit is expected to increase from ~$1.1 billion in fiscal 2014 to ~$1.5 billion in fiscal 2017.

The operating margins for MSI’s peers Harris Corporation (HRS) and L3 Technologies (LLL) reached 19.2% and 10.7%, respectively, at the end of fiscal 2017.

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