NYSE$MSI

Motorola Solutions, Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Motorola Solutions reported strong Q2 2024 results, with increased revenue and earnings, and raised full-year outlook.

Motorola Solutions reported an excellent second quarter with strong growth in all three technologies, achieving record Q2 sales of $2.6 billion, up 9% year-over-year, and GAAP earnings per share of $2.60, up 21% year-over-year. The company raised its full-year revenue and earnings expectations due to strong business momentum.

  • Sales were $2.6 billion, up 9% versus a year ago.
  • GAAP earnings per share was $2.60, up 21% versus a year ago
  • Non-GAAP EPS was $3.24, up 22% versus a year ago
  • Operating cash flow was $180 million, up $87 million versus a year ago

Headline financials

Total Revenue

$2.63B

Previous: $2.4B+9.4%
EPS

$2.60

Previous: $2.65-1.9%
GAAP Operating Margin

24.5%

Previous: 21.6%+13.4%
GAAP Effective Tax Rate

23.3%

Previous: 23.4%-0.4%
Ending Backlog

$14B

Previous: $14.3B-2.4%
Capital Expenditures

-$68M

No prior period
Free Cash Flow

$443M

Previous: $371M+19.4%
Net Income

$443M

Previous: $371M+19.4%
Operating Income

$644M

Previous: $518M+24.3%
Gross Profit

$1.34B

Previous: $1.19B+12.6%
Cash & Equivalents

$1.38B

Previous: $710M+94.5%
Total Assets

$13.3B

Previous: $12.3B+8.9%
R&D Expense

$220M

No prior period
Stock-Based Comp

$63M

Previous: $53M+18.9%

Revenue & EPS history

Motorola · Revenue · Quarterly

$2.63B

Q2 2024+9.4%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Motorola · $2.56B total across 2 segments · Q3 2023

  • Products & Systems Integration
    $1.61B+5.4%
  • Software & Services
    $944M+11.8%

Forward guidance

The company expects revenue growth between 7% and 8% compared to the third quarter of 2023. The company expects non-GAAP EPS in the range of $3.32 to $3.37 per share. For the full year 2024, the company now expects revenue growth of approximately 8% and non-GAAP EPS of between $13.22 and $13.30 per share.

Tailwinds

  • Revenue growth between 7% and 8% compared to Q3 2023
  • Non-GAAP EPS in the range of $3.32 to $3.37 per share for Q3 2024
  • Full-year 2024 revenue growth of approximately 8%
  • Full-year 2024 non-GAAP EPS of between $13.22 and $13.30 per share
  • Assumes approximately 171 million fully diluted shares and a non-GAAP effective tax rate of approximately 23.5% for full year

Headwinds

  • Guidance has not been quantitatively reconciled for forward-looking non-GAAP metrics to their most comparable GAAP measures
  • The company does not provide specific guidance for the various reconciling items as certain items that impact these measures have not occurred, are out of the company’s control, or cannot be reasonably predicted.
  • A reconciliation to the most comparable GAAP financial metric is not available without unreasonable effort.
  • The unavailable reconciling items could significantly impact the company’s results.
  • Guidance assumes approximately 170 million fully diluted shares and a non-GAAP effective tax rate of approximately 24% for Q3 2024

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 Q2 2024

Historical avgQ2 2024

+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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