Thursday 10th of February 2022 11:56:45 AM

Motorola Solutions slides after outlook fall short of consensus, revenue miss: Q4

  • Motorola Solutions (MSI -6.2%) is down after the company reported a revenue miss in its fourth quarter's results with earnings outlook landing below the consensus mark.
  • Revenue of $2.32B (+2.2% Y/Y) misses consensus by $10M.
  • By segment revenue: Products and Systems Integration segment revenue declined 1% primarily due to supply constraints; and Software and Services sales grew 8% driven by growth in LMR services, video security and command center software.
  • Sales from acquisitions were $10M, and the impact of favorable currency rates was $6M.
  • Non-GAAP Operating margin was 28.9% of sales, down from 29.3% in the year-ago quarter.
  • The decline in operating margin is linked to operating expenses related to incentive compensation and acquisitions as well as lower sales in the Products and Systems Integration segment.
  • Cash generated from operating activities was $703M; Free cash flow was $635M, compared with $637M in 4Q20.
  • The company ended the quarter with record backlog of $13.6B, up $1.3B in Software and Services and up $886M in Products and Systems Integration from a year ago.
  • Non-GAAP EPS of $2.85 beats by $0.11.
  • Q1 2022 Guidance: The company expects revenue growth of approximately 3% Y/Y; Non-GAAP EPS of $1.53 to $1.59 vs. consensus of $1.82.
  • FY 2022 Guidance: For the full-year, revenue growth is expected to be ~7% Y/Y; and Non-GAAP EPS of $9.80 to $9.95 vs. consensus of $9.89.
  • The company has closed acquisitions of Envysion and 911 Datamaster for $124M and $35M, net of cash acquired, respectively.


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