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Chicago-based Motorola Solutions, Inc. (MSI) operates in the communication equipment industry and provides public safety and enterprise security solutions. With a market cap of $70.3 billion, Motorola operates through Products and Systems Integration and Software and Services segments.
The tech giant is expected to announce its first-quarter earnings on Thursday, May 1. Ahead of the event, analysts expect MSI to deliver an adjusted EPS of $2.72, up 6.3% from $2.56 reported in the year-ago quarter. The company has a robust earnings surprise history and has surpassed the Street’s bottom-line estimates in each of the past four quarters.
For the full fiscal 2025, analysts expect MSI to report an adjusted EPS of $13.49, up nearly 6% from $12.73 reported in fiscal 2024. In fiscal 2026, its earnings are expected to further surge 8.1% year-over-year to $14.58 per share.
MSI stock prices have soared 23.6% over the past 52 weeks, significantly outpacing the Technology Select Sector SPDR Fund’s (XLK) 3% dip and the S&P 500 Index’s ($SPX) 5.4% uptick during the same time frame.
However, MSI stock prices dropped nearly 6% in the trading session after the release of its mixed fiscal 2024 results on Feb. 13. While the company’s overall topline for the year increased 8% year-over-year to $10.8 billion, its non-GAAP operating margins observed a slight decline due to its acquisitions. Furthermore, its GAAP earnings dropped nearly 7% year-over-year to $9.23 per share.
On a more positive note, the company’s backlog at the end of the year stood at $14.7 billion, marking an increase of $438 million from fiscal 2023. Moreover, MSI delivered a 17% year-over-year growth in operating cash flows, reaching a record $2.4 billion and generated $2.1 billion in free cash flow, up 19% from the prior year.
The consensus view on MSI stock is moderately optimistic, with a “Moderate Buy” rating overall. Of the 11 analysts covering the stock, seven recommend “Strong Buy,” one advises “Moderate Buy,” and three advocate a “Hold” rating. Its mean price target of $522.12 suggests a 24% upside potential from current price levels.
