NYSE$MSI

Motorola Solutions, Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a decrease in revenue but growth in software and services segment.

Motorola Solutions reported Q3 2020 financial results with a revenue of $1.9 billion, a 6% decrease compared to the previous year. The Software and Services segment grew by 9%, and the company was awarded a $120M+ next-generation 911 multi-year contract.

  • Revenue was $1.9 billion, down 6% year-over-year.
  • Software and Services segment grew 9% with expanded operating margins.
  • GAAP earnings per share (EPS) was $1.18.
  • Generated $343 million of free cash flow.

Headline financials

Total Revenue

$1.87B

Previous: $1.99B-6.3%
EPS (adj)

$1.95

Previous: $2.04-4.4%
GAAP Operating Margin

18.9%

Previous: 20.7%-8.7%
GAAP Effective Tax Rate

18.0%

Previous: 23.0%-21.7%
Ending Backlog

$10.7B

No prior period
Free Cash Flow

$205M

Previous: $267M-23.2%
Net Income

$205M

Previous: $267M-23.2%
Operating Income

$352M

Previous: $413M-14.8%
Gross Profit

$909M

Previous: $1.01B-9.7%
Cash & Equivalents

$1.01B

Previous: $1.14B-11.5%
Total Assets

$10.4B

Previous: $10.4B-0.1%
Stock-Based Comp

$31M

Previous: $30M+3.3%

Revenue & EPS history

Motorola · Revenue · Quarterly

$1.87B

Q3 2020-6.3%vs Q3 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Motorola · $1.87B total across 2 segments · Q3 2020

  • Products & Systems Integration
    $1.16B-13.8%
  • Software & Services
    $705M+9.3%

Forward guidance

Motorola Solutions expects a revenue decline of (6%) to (5.5%) for the fourth quarter of 2020 compared to the fourth quarter of 2019. The company expects non-GAAP earnings per share in the range of $2.71 to $2.76.

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 Q3 2020

Historical avgQ3 2020

+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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