Summary
Motorola Solutions, Inc. (MSI) reported strong growth in its 2018 fiscal year, with net sales increasing by 15% to $7.34 billion, driven by significant contributions from acquisitions and organic growth across both its Products and Systems Integration, and Services and Software segments. The company achieved a positive net earning of $966 million, a substantial turnaround from a net loss in the prior year, with diluted earnings per share of $5.62. Strategic acquisitions, including Avigilon Corporation and Plant Holdings, Inc., bolstered its video solutions and command center software capabilities, respectively, positioning MSI for continued expansion in public safety and security markets. MSI demonstrated a commitment to returning capital to shareholders through share repurchases and a 10% increase in its quarterly dividend. The company's backlog remained robust at $10.6 billion, indicating strong future revenue visibility. Despite increased operating expenses, largely due to integration of acquisitions and R&D investments, MSI maintained its operating earnings and focused on strategic investments in its core areas, including innovation in LTE and software-centric solutions. The company's financial position appears solid, supported by operating cash flow and a revolving credit facility, enabling continued investment in growth initiatives and shareholder returns.
Financial Highlights
55 data points| Revenue | $7.34B |
| Cost of Revenue | $3.86B |
| Gross Profit | $3.48B |
| R&D Expenses | $637.00M |
| SG&A Expenses | $1.25B |
| Operating Income | $1.25B |
| Interest Expense | $240.00M |
| Net Income | $966.00M |
| EPS (Basic) | $5.95 |
| EPS (Diluted) | $5.62 |
| Shares Outstanding (Basic) | 162.40M |
| Shares Outstanding (Diluted) | 172.00M |
Key Highlights
- 1Net sales increased by 15% to $7.34 billion in 2018, reflecting strong performance across segments.
- 2Achieved net earnings of $966 million, a significant improvement from a net loss in 2017, with diluted EPS of $5.62.
- 3Completed several strategic acquisitions in 2017-2018, including Avigilon and Plant Holdings, enhancing video and software capabilities.
- 4Backlog increased to $10.6 billion, indicating strong future revenue streams.
- 5Returned capital to shareholders through $132 million in share repurchases and $337 million in dividends, with a 10% dividend increase.
- 6Operating earnings remained strong at $1.3 billion, despite increased investment in R&D and SG&A related to acquisitions.
- 7The Services and Software segment showed robust growth (20%), signaling a positive shift in revenue mix towards higher-margin areas.