Motorola to Report Q1 Results: Will Top-Line Growth Boost Earnings?

Motorola Solutions, Inc. MSI is scheduled to report first-quarter 2025 results on May 1, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 4.66%. It reported a trailing four-quarter earnings surprise of 8.62%, on average.

The Chicago-based company is expected to have higher revenues year over year due to growth in both segments, a strong focus on product innovation and healthy AI traction across various sectors.  

Factors at Play

During the quarter, Motorola unveiled its Pelco portfolio, an innovative suite of AI-powered devices tailored for enterprises operating in high-demand environments, such as the oil and gas sectors, as well as ports. Leveraging its extensive engineering expertise and ongoing investments in research and development, the Pelco product lineup includes fixed cameras, ruggedized and long-range cameras, smart sensors and AI analytics that seamlessly integrate with a wide range of third-party video management systems. Such features are capable of enduring extreme weather, corrosive elements and other hazardous conditions where standard security cameras and devices often fail. The company also expanded its security offerings by introducing the V200 body camera that boasts advanced features to support frontline workers in various hostile situations. These advancements are likely to have been reflected in the upcoming results. 

In the to-be-reported quarter, San Luis province, Argentina,  opted to equip its police forces, first responders and community with a Motorola TETRA (Terrestrial Trunked Radio) system. The portfolio includes various messaging, location and workforce management applications that streamline the management of the entire radio fleet. Moreover, the company has successfully deployed a new digital radio communications system aboard the German Navy’s F124 Sachsen frigate to improve the latter’s command-and-control operations. These developments are likely to have had a favorable effect on Motorola’s first-quarter performance. 

In the March quarter, Motorola enhanced its public safety and emergency communication service portfolio through the buyout of RapidDeploy. The acquisition of this cloud-native 911 solution provider aligns with Motorola's ongoing efforts to bolster its emergency coordination solutions, reinforcing its position in the public safety and enterprise security sectors. These advancements are likely to have been reflected in the upcoming results. 

Overall Expectations

Per the Zacks Consensus Estimate, net sales in the Products and Systems Integration segment are expected to be $1.57 billion in the first quarter of 2025, implying 5.1% growth year over year. Revenues from Software and Service are projected to be $946.9 million, an improvement from $899 million reported in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $2.51 billion, indicating a 5.26% year-over-year decline. The consensus mark for earnings is pegged at $3.01 per share, indicating an improvement from $2.81 per share in the year-ago quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Motorola in the first quarter. The combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP of MSI: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 

Motorola Solutions, Inc. Price and EPS Surprise

Motorola Solutions, Inc. price-eps-surprise | Motorola Solutions, Inc. Quote

MSI’s Zacks Rank: Motorola carries a Zacks Rank #3 at present.

Stocks to Consider

Carvana CVNA is set to release quarterly numbers on May 7. It has an Earnings ESP of +19.45% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

QUALCOMM Incorporated QCOM is set to release quarterly numbers on April 29. It has an Earnings ESP of +0.86% and carries a Zacks Rank #2.

CGI Group GIB is set to release quarterly numbers on April 30. It has an Earnings ESP of +0.89% and carries a Zacks Rank #2.

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This article originally published on Zacks Investment Research (zacks.com).

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