Motorola Beats Q4 Earnings Estimates on Solid Revenue Growth

Core Insights - Motorola Solutions, Inc. (MSI) reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates [1][2] Financial Performance - Net earnings on a GAAP basis for Q4 2024 were $611 million or $3.56 per share, up from $595 million or $3.47 per share in Q4 2023, primarily due to top-line growth [3] - Non-GAAP earnings for Q4 2024 were $693 million or $4.04 per share, compared to $668 million or $3.90 per share in the prior year, beating the Zacks Consensus Estimate by 18 cents [3] - For the full year 2024, GAAP earnings declined to $1.58 billion or $9.23 per share from $1.71 billion or $9.93 per share in 2023, while non-GAAP earnings increased to $2.37 billion or $13.84 per share from $2.06 billion or $11.95 per share [4] Revenue Growth - Quarterly net sales reached $3.01 billion, a 6% increase year over year, driven by growth in North America and strong demand for video security, command center software, and LMR services [5] - Total revenues for 2024 were $10.82 billion, an 8% increase year over year, with growth in North America partially offset by lower revenues from the U.K. [6] Regional Performance - North American revenues increased by 9% year over year to $2.2 billion, while international revenues decreased by 3% to $807 million, primarily due to lower revenues from Ukraine and the exit from the ESN contract [7] Segment Performance - Products and Systems Integration net sales rose to $1.95 billion from $1.89 billion year over year, driven by higher demand for LMR and video security solutions [8] - Software and Services net sales increased by 11% year over year to $1.06 billion, with strong performance across command center software, LMR, and video security services [9] Operating Earnings and Margins - GAAP operating earnings increased to $814 million from $738 million in the prior year, with a GAAP operating margin of 27%, up from 25.9% [11] - Non-GAAP operating earnings improved to $916 million from $870 million, with a non-GAAP operating margin of 30.4% compared to 30.5% in the previous year [11] Cash Flow and Liquidity - The company generated $1.07 billion in cash from operating activities in Q4 2024, compared to $1.25 billion in Q4 2023, with total operating cash flow for 2024 at $2.39 billion [13] - As of December 31, 2024, MSI had $2.1 billion in cash and cash equivalents and $5.68 billion in long-term debt [14] Guidance - For Q1 2025, the company expects revenue growth between 5.0% and 5.5% year over year, with non-GAAP EPS projected between $2.98 and $3.03 per share [15] - For the full year 2025, management anticipates non-GAAP earnings in the range of $14.64 to $14.74 per share, with revenue growth of approximately 5.5% [16]