Summary
Motorola Solutions, Inc. (MSI) reported a solid second quarter and first half of 2017, demonstrating revenue growth and improved profitability. For the three months ended July 1, 2017, net sales increased by 5% to $1.5 billion, and operating earnings rose to $257 million from $224 million in the prior year's quarter. This growth was driven by increased demand across both the Products and Services segments, with particular strength noted in the Americas region. The company also highlighted a significant improvement in net earnings attributable to Motorola Solutions, Inc., which grew to $131 million ($0.78 per diluted share) from $107 million ($0.61 per diluted share) in the comparable 2016 period. The company continued to execute on its strategic priorities, including investments in software and the expansion of its Services portfolio through acquisitions like Interexport and Spillman Technologies, Inc. Looking ahead, MSI announced its intention to acquire Plant Holdings, Inc. (owner of Airbus DS Communications) and Kodiak Networks, underscoring its commitment to enhancing its Command Center and collaboration software capabilities. MSI also returned substantial capital to shareholders through dividends and share repurchases, reinforcing its focus on shareholder value.
Financial Highlights
55 data points| Revenue | $1.50B |
| Cost of Revenue | $851.00M |
| Gross Profit | $690.00M |
| R&D Expenses | $138.00M |
| SG&A Expenses | $254.00M |
| Operating Income | $261.00M |
| Interest Expense | $55.00M |
| Net Income | $131.00M |
| EPS (Basic) | $0.80 |
| EPS (Diluted) | $0.78 |
| Shares Outstanding (Basic) | 162.30M |
| Shares Outstanding (Diluted) | 169.00M |
Key Highlights
- 1Net sales for Q2 2017 increased 5% to $1.5 billion compared to Q2 2016, driven by growth in both Products and Services segments.
- 2Operating earnings for Q2 2017 increased to $257 million from $224 million in Q2 2016, with operating margin improving to 17.2% from 15.7%.
- 3Net earnings attributable to Motorola Solutions, Inc. for Q2 2017 rose to $131 million ($0.78 per diluted share) from $107 million ($0.61 per diluted share) in Q2 2016.
- 4The company generated $315 million in net cash from operating activities in the first half of 2017, an increase from $304 million in the first half of 2016.
- 5Motorola Solutions announced intentions to acquire Plant Holdings, Inc. (Airbus DS Communications business) and Kodiak Networks, focusing on expanding its software portfolio.
- 6Capital returned to shareholders in the first half of 2017 totaled $412 million through dividends and share repurchases.
- 7The Services segment experienced strong revenue growth of 9% in the first half of 2017, driven by acquisitions and core growth in Managed & Support services.