Motorola Solutions, Inc. (MSI), headquartered in Chicago, Illinois, is a key player in the communication equipment industry, specializing in public safety and enterprise security solutions. With a market capitalization of $74.7 billion, the company operates in two primary segments: Products and Systems Integration, and Software and Services.
As the end of the third quarter approaches, MSI is gearing up to announce its earnings results on Thursday, Oct. 30, after the market closes. Analysts are anticipating a modest increase in adjusted earnings per share (EPS) to $3.54, up 2.3% from $3.46 in the same period last year. The company has consistently exceeded earnings expectations, surpassing analysts' bottom-line estimates in each of the last four quarters.
Looking to the future, analysts project MSI’s full fiscal 2025 EPS to rise to $13.69, reflecting a 7.5% increase from the previous fiscal year's $12.73. Further growth is expected in fiscal 2026, with earnings forecast to grow 8% year-over-year, reaching $14.78 per share.
Despite its strong performance in earnings, MSI's stock price has faced a 5% decline over the past 52 weeks, notably underperforming the Technology Select Sector SPDR Fund (XLK), which gained 23.2%, and the S&P 500 Index ($SPX), which returned 14.5% in the same period.
However, MSI’s stock saw a 1.9% increase following its better-than-expected Q2 results, which were released on Aug. 7. The company reported record revenue and earnings, driven by strong demand for its safety and security solutions. Its revenue surged 5% year-over-year to $2.8 billion, surpassing analysts' expectations. Software and service revenue saw an impressive 15% increase, contributing significantly to the growth. Non-GAAP EPS rose 10% year-over-year to $3.57, beating consensus estimates by a significant margin.
The general sentiment surrounding MSI stock is moderately optimistic, with a "Moderate Buy" rating overall. Among the 13 analysts covering the stock, six recommend "Strong Buys," one suggests "Moderate Buy," and six opt for "Hold" ratings. The average price target for MSI is $507.50, indicating a potential upside of 13.6% from current levels.