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Motorola Solutions, Inc. (NYSE:MSI) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Motorola Solutions reported US$10.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$9.93 beat expectations, being 3.1% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Motorola Solutions
Taking into account the latest results, the consensus forecast from Motorola Solutions' twelve analysts is for revenues of US$10.6b in 2024. This reflects a modest 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.1% to US$11.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$10.6b and earnings per share (EPS) of US$11.08 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$347, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Motorola Solutions, with the most bullish analyst valuing it at US$375 and the most bearish at US$237 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 6.2% growth on an annualised basis. That is in line with its 5.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.6% per year. So it's pretty clear that Motorola Solutions is forecast to grow substantially faster than its industry.