NYSE$MSI

Motorola Solutions, Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Achieved record Q1 orders, sales, and ending backlog.

Motorola Solutions reported a strong start to the year with record first-quarter orders, sales, and ending backlog. Sales reached $1.9 billion, a 7% increase year-over-year, driven by growth in both Products and Systems Integration and Software and Services segments. The company closed acquisitions of Ava Security and TETRA Ireland.

  • Sales of $1.9 billion, up 7% versus a year ago.
  • GAAP earnings per share (EPS) of $1.54.
  • Record Q1 ending backlog of $13.4 billion, up 19% versus a year ago.
  • Closed the acquisitions of Ava Security and TETRA Ireland.

Headline financials

Total Revenue

$1.89B

Previous: $1.77B+6.7%
EPS (adj)

$1.70

Previous: $1.87-9.1%
GAAP Operating Margin

12.6%

Previous: 16.8%-25.0%
GAAP Effective Tax Rate

-22.4%

Previous: 15.1%-248.3%
Ending Backlog

$13.4B

Previous: $11.3B+18.6%
Free Cash Flow

$267M

Previous: $244M+9.4%
Net Income

$267M

Previous: $244M+9.4%
Operating Income

$239M

Previous: $298M-19.8%
Gross Profit

$857M

Previous: $860M-0.3%
Cash & Equivalents

$878M

Previous: $1.32B-33.5%
Total Assets

$11.6B

Previous: $10.4B+11.8%
Stock-Based Comp

$37M

Previous: $29M+27.6%

Revenue & EPS history

Motorola · Revenue · Quarterly

$1.89B

Q1 2022+6.7%vs Q1 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Motorola · $1.89B total across 2 segments · Q1 2022

  • Products & Systems Integration
    $1.1B+8.7%
  • Software & Services
    $789M+4.1%

Forward guidance

The company expects revenue growth of 4% to 5% compared to the second quarter of 2021 and expects non-GAAP EPS in the range of $1.83 to $1.88 per share for the second quarter of 2022. The company is maintaining its prior guidance of 7% revenue growth and non-GAAP EPS guidance of between $9.80 and $9.95 per share for the full year 2022.

Tailwinds

  • Pricing actions
  • Targeted cost reductions
  • Favorable mix for LMR products
  • Higher operating margins in the second half of the year
  • Ongoing sources of government funding.

Headwinds

  • $50 million in foreign exchange headwinds for Q2 2022
  • 173 million fully diluted shares assumed for Q2 2022
  • Effective tax rate of 22% to 23% assumed for Q2 2022
  • $170 million in foreign exchange headwinds for full year 2022
  • Effective tax rate of 21% to 21.5% assumed for full year 2022

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.9%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+4.2%

Avg return

30 days after

59%

43 / 73 earnings

Positive

+12.4%

Q4 2018

Best reaction

-9.3%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%-8.7%-5.2%
Q4 2025+7.7%+8.7%+12.3%
Q3 2025-9.3%-8.7%-14.4%
Q2 2025+1.9%+5.6%+7.6%
Q1 2025-7.6%-5.5%-5.4%
Q4 2024-6.0%-5.8%-10.3%
Q3 2024+7.6%+6.0%+4.4%
Q2 2024+2.9%+1.0%+10.8%
Q1 2024+5.3%+6.6%+8.6%
Q4 2023+0.9%-2.7%+2.3%
Q3 2023+6.7%+8.7%+16.0%
Q2 2023-3.1%-3.4%-1.4%
Q1 2023-2.4%-0.7%-2.0%
Q4 2022+5.2%+4.8%+1.3%
Q3 2022+6.2%+7.0%+13.7%
Q2 2022+4.9%+4.5%+2.2%
Q1 2022+6.6%+5.7%+3.6%
Q4 2021-6.1%-9.6%-6.2%
Q3 2021-2.1%-1.3%-1.8%
Q2 2021+2.6%+3.1%+9.9%
Q1 2021+7.2%+8.6%+13.0%
Q4 2020+1.5%+2.1%-0.3%
Q3 2020-3.9%+0.9%+5.5%
Q2 2020+4.3%+3.3%+10.6%
Q1 2020-3.0%-3.0%+15.2%
Q4 2019+1.6%+4.4%-0.4%
Q3 2019+1.0%-2.5%+1.5%
Q2 2019+2.5%+3.4%+9.0%
Q1 2019+0.6%-0.7%+5.1%
Q4 2018+12.4%+13.9%+15.3%
Q3 2018+5.1%+2.7%+7.1%
Q2 2018-2.7%+0.1%+6.2%
Q1 2018+0.4%+0.2%+1.4%
Q4 2017+4.4%+3.3%+6.9%
Q3 2017+4.1%+1.7%+2.7%
Q2 2017-0.1%-2.0%-2.8%
Q1 2017-2.2%-1.9%+0.3%
Q4 2016+2.0%-3.4%+0.6%
Q3 2016+6.1%+9.8%+11.1%
Q2 2016+6.1%+7.2%+12.5%
Q1 2016-5.0%
Q4 2015+7.2%
Q3 2015-5.5%
Q2 2015+5.9%
Q1 2015+2.4%
Q4 2014-0.0%
Q3 2014-0.3%
Q2 2014-4.5%
Q1 2014+3.0%
Q4 2013-2.6%
Q3 2013+3.4%
Q2 2013+0.7%
Q1 2013-8.7%
Q4 2012+0.9%
Q3 2012+0.5%
Q2 2012+4.8%
Q1 2012-0.0%
Q4 2011+3.0%
Q3 2011+3.6%
Q2 2011+1.3%
Q1 2011-0.2%
Q4 2010-2.3%
Q3 2010+0.4%
Q2 2010-0.7%
Q1 2009-3.2%
Q1 2010+1.4%
Q4 2009-0.6%
Q3 2009+2.5%
Q3 2008+2.5%
Q2 2009-2.5%
Q2 2008-2.5%
Q4 2007-2.5%
Q4 2008-2.5%

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