Motorola Solutions, Inc. (NYSE:MSI) is scheduled to report Q3 earnings results after markets close for trading on October 29, 2020.
The company is expected to report earnings of $1.78/share on revenue of $1.829 billion. The consensus earnings per share (EPS) of $1.78/share is based on a poll of 11 analysts and represents a decline in eps of −12.9% over the same quarter last year, when the company reported earnings of $2.04/share.
The revenue forecast of $1.829 billion based on a poll of 9 analysts implies a year-over-year (YoY) decline in revenue of −8.3%. Last year the company reported $1.994 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.
What are your expectations from Motorola Solutions, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 27, 2020, the stock price reacted by increasing 4.3%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 6, 2020||$138.33||$144.26||4.3%||Increase|
|May 7, 2020||$135.30||$131.27||−3.0%||Decline|
|February 6, 2020||$176.69||$179.46||1.6%||Increase|
|October 30, 2019||$164.75||$166.32||1.0%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.98, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.98 implies a 0.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
Motorola Solutions, Inc. is currently trading at $172.30/share, down −1.4% for the day. The company is trading at approximately 91.9% of its 52-week high of $187.49/share. The company’s stock price is up 19.4% since the last earnings report and up 2.0% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 64.90 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 34.74 and a forward P/E multiple of 22.77.
Motorola Solutions, Inc.’s current share price also implies a price-to-book (P/B) multiple of −35.25. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 27, 2020|
|Stock Price (Current)||$172.30|
|P/E Ratio (Fwd)||22.8x|
|Total Debt / Total Capital||17.1%|
|Levered Free Cash Flow||$1.617 billion|
|EV / EBITDA||16.7x|
Motorola Solutions, Inc. is a large-cap stock with a market capitalization of $29.254 billion and a total enterprise value of $34.064 billion. The company operates in the Information Technology sector and the Communications Equipment industry.
Motorola Solutions, Inc. provides mission-critical communication solutions in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Services and Software. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video solutions, as well as the implementation, optimization, and integration of networks, devices, software, and applications for government, public safety and first-responder agencies, municipalities, and commercial and industrial customers. Its products include two-way portable and vehicle-mounted radios, accessories, software features, and upgrades; video cameras; radio network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Services segment provides repair, technical support, and hardware maintenance services. This segment also offers monitoring, software updates, and cybersecurity services; and public safety and enterprise command center software suite, unified communications applications, and video software solutions. It serves for government, public safety, and commercial communication networks. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.