Summary
Motorola Solutions, Inc. (MSI) reported a strong second quarter and first half of 2019, demonstrating robust revenue growth and improved profitability. For the second quarter of 2019, net sales increased by 6% to $1.86 billion, and net earnings attributable to Motorola Solutions, Inc. rose to $207 million ($1.18 per diluted share) from $180 million ($1.05 per diluted share) in the prior year. The company's performance was primarily driven by growth in the Americas across both its Products and Systems Integration, and Services and Software segments. The first half of 2019 also showed significant improvement, with net sales up 9% to $3.52 billion and net earnings attributable to Motorola Solutions, Inc. increasing to $358 million ($2.04 per diluted share) from $297 million ($1.73 per diluted share) in the first half of 2018. The company successfully integrated recent acquisitions, including VaaS and Avtec, contributing positively to revenue and operating earnings. MSI also highlighted its strong operating cash flow, which improved significantly year-over-year, and continued commitment to returning capital to shareholders through dividends and share repurchases.
Financial Highlights
55 data points| Revenue | $1.86B |
| Cost of Revenue | $929.00M |
| Gross Profit | $931.00M |
| R&D Expenses | $170.00M |
| SG&A Expenses | $351.00M |
| Operating Income | $349.00M |
| Interest Expense | $59.00M |
| Net Income | $207.00M |
| EPS (Basic) | $1.25 |
| EPS (Diluted) | $1.18 |
| Shares Outstanding (Basic) | 164.90M |
| Shares Outstanding (Diluted) | 176.10M |
Key Highlights
- 1Net sales for Q2 2019 increased by 6% to $1.86 billion, and for the first half of 2019 increased by 9% to $3.52 billion, driven by growth in the Americas.
- 2Net earnings attributable to MSI increased by 15% to $207 million ($1.18 per diluted share) in Q2 2019, and by 21% to $358 million ($2.04 per diluted share) in the first half of 2019.
- 3The Products and Systems Integration segment saw a 4% increase in net sales in Q2 and an 8% increase in the first half, while the Services and Software segment grew by 9% in Q2 and 11% in the first half.
- 4Gross margin improved significantly to 50.1% in Q2 2019 (from 46.7% in Q2 2018) and to 48.5% in the first half of 2019 (from 46.2% in the first half of 2018), indicating enhanced profitability.
- 5Operating cash flow for the first half of 2019 showed a substantial improvement, increasing to $502 million from a negative $75 million in the same period of 2018.
- 6The company repurchased $170 million of common stock and paid $187 million in dividends in the first half of 2019, demonstrating a commitment to shareholder returns.
- 7Motorola Solutions completed several strategic acquisitions in late 2018 and early 2019 (VaaS, Avtec, Avigilon, Plant Holdings), which are beginning to contribute to revenue and segment growth.