Summary
Motorola Solutions, Inc. (MSI) reported strong first-quarter 2019 results, with net sales increasing by 13% year-over-year to $1.7 billion. This growth was driven by robust performance in both the Products and Systems Integration segment (+12%) and the Services and Software segment (+14%), with significant contributions from recent acquisitions. Profitability also saw a marked improvement, with operating earnings up 34% to $229 million and net earnings attributable to Motorola Solutions, Inc. increasing to $151 million ($0.86 per diluted share), compared to $117 million ($0.69 per diluted share) in the prior year. The company continued its strategic growth initiatives through acquisitions, notably VaaS International Holdings and Avtec, Inc., while also actively returning capital to shareholders through share repurchases and dividends. Management expressed confidence in the company's liquidity and ability to meet its financial obligations.
Financial Highlights
54 data points| Revenue | $1.66B |
| Cost of Revenue | $884.00M |
| Gross Profit | $773.00M |
| R&D Expenses | $162.00M |
| SG&A Expenses | $327.00M |
| Operating Income | $229.00M |
| Interest Expense | $60.00M |
| Net Income | $151.00M |
| EPS (Basic) | $0.92 |
| EPS (Diluted) | $0.86 |
| Shares Outstanding (Basic) | 164.00M |
| Shares Outstanding (Diluted) | 174.60M |
Key Highlights
- 1Net sales increased 13% year-over-year to $1.7 billion, driven by growth in both Products and Systems Integration (+12%) and Services and Software (+14%) segments.
- 2Operating earnings grew 34% to $229 million, with operating margins improving in both segments.
- 3Net earnings attributable to Motorola Solutions, Inc. increased to $151 million, or $0.86 per diluted share, up from $117 million, or $0.69 per diluted share, in the prior year's first quarter.
- 4The company completed strategic acquisitions of VaaS International Holdings ($445 million) and Avtec, Inc. ($136 million) in early 2019, integrating them into its existing segments.
- 5Operating cash flow significantly improved to $251 million from a use of $500 million in the prior year's quarter, primarily due to a voluntary pension contribution in Q1 2018.
- 6Motorola Solutions repurchased approximately 1.2 million shares for $145 million and paid $93 million in dividends during the quarter, demonstrating a commitment to returning capital to shareholders.
- 7The company reported strong growth in the Americas and EMEA regions, partially offset by declines in the Asia Pacific region.