Motorola Q3 Earnings Beat Estimates on Record Revenues, View Raised

Core Insights - Motorola Solutions, Inc. (MSI) reported record revenues and operating earnings for Q3 2024, driven by effective operational execution and strong order trends [1][2] - The company raised its guidance for 2024, anticipating continued growth momentum due to robust demand patterns [2][11] Financial Performance - GAAP earnings for the quarter were $562 million or $3.29 per share, up from $464 million or $2.70 per share year-over-year, primarily due to top-line growth [3] - Non-GAAP earnings were $639 million or $3.74 per share, compared to $547 million or $3.19 per share in the previous year, beating the Zacks Consensus Estimate by $0.36 [3] - Quarterly net sales reached a record high of $2.79 billion, reflecting a 9% year-over-year increase, surpassing the consensus estimate of $2.76 billion [4] Revenue Breakdown - North America revenues increased by 13% to $2 billion, driven by growth in LMR, command center software, and video security products [5] - International revenues rose by 1% to $783 million, with growth in video security and command center software partially offset by declines in the UK [5] - Products and Systems Integration segment sales increased to $1.78 billion, while Software and Services segment sales rose 7% to $1 billion [6][7] Operating Metrics - GAAP operating earnings increased to $711 million from $639 million year-over-year, with non-GAAP operating earnings rising to $830 million from $741 million [8] - Overall GAAP operating margin improved to 25.5% from 25%, while non-GAAP operating margin increased to 29.7% from 29% [9] Cash Flow and Liquidity - The company generated $759 million in cash from operating activities in Q3, compared to $714 million in the same quarter last year [10] - Free cash flow for the quarter was $702 million, with $31 million worth of stock repurchased [10] Future Outlook - The company raised its 2024 non-GAAP earnings guidance to a range of $13.63-$13.68 per share, up from $13.22-$13.30, with revenue growth expectations increased to 8.25% [11] - Motorola is positioned for growth due to disciplined capital deployment and a strong balance sheet, with anticipated strong demand across various product lines [12]