NYSE$MSI

Motorola Solutions, Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Motorola Solutions reported record Q4 and full-year sales, earnings per share, and backlog.

Motorola Solutions reported a strong Q4 2022, with sales up 17% to $2.7 billion and EPS up 49% to $3.43. The company achieved record sales, operating earnings, earnings per share, and cash flow. The company also ended the year with a record backlog of $14.3 billion, up $788 million from the prior year.

  • Sales of $2.7 billion, up 17% from Q4 in the prior year.
  • Record backlog of $14.3 billion, up $788 million or 6% versus a year ago.
  • Generated record $1.3 billion of operating cash flow in Q4.
  • GAAP Q4 earnings per share (EPS) of $3.43, up 49% versus a year ago.

Headline financials

Total Revenue

$2.71B

Previous: $2.32B+16.6%
EPS (adj)

$3.60

Previous: $2.85+26.3%
GAAP Operating Margin

25.6%

Previous: 23.7%+8.0%
GAAP Effective Tax Rate

11.0%

Previous: 22.4%-50.9%
Ending Backlog

$14.3B

Previous: $13.6B+5.1%
Free Cash Flow

$1.2B

Previous: $635M+89.0%
Net Income

$590M

Previous: $402M+46.8%
Operating Income

$692M

Previous: $549M+26.0%
Gross Profit

$1.35B

Previous: $1.18B+14.2%
Cash & Equivalents

$1.33B

Previous: $1.87B-29.3%
Total Assets

$12.8B

Previous: $12.2B+5.1%
Stock-Based Comp

$46M

Previous: $35M+31.4%

Revenue & EPS history

Motorola · Revenue · Quarterly

$2.71B

Q4 2022+16.6%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Motorola · $2.71B total across 2 segments · Q4 2022

  • Products & Systems Integration
    $1.81B+21.1%
  • Software & Services
    $896M+8.6%

Forward guidance

The company expects revenue growth between 12% and 13% compared to the first quarter of 2022. The company expects non-GAAP earnings per share in the range of $2.02 to $2.07 per share. For full year 2023, the company expects revenue in the range of $9.65 billion to $9.7 billion and non-GAAP earnings per share in the range of $11.10 to $11.22 per share.

Headwinds

  • Assumes approximately $40 million in foreign exchange headwinds.
  • Assumes approximately 172 million fully diluted shares.
  • Assumes an effective tax rate of approximately 23%.
  • The company has not quantitatively reconciled its guidance for forward-looking non-GAAP measurements in this news release to their most comparable GAAP measurements because 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.
  • The strong U.S. dollar negatively impacted cash generated from the company's foreign operations in 2022, driven by revenues and costs that are denominated in foreign currencies.

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 Q4 2022

Historical avgQ4 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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