S&P 500 (NYSE:SPY) component Motorola Solutions (NYSE:MSI) will unveil its latest earnings tomorrow, Wednesday, July 25, 2012. Motorola Solutions provides technologies, products, and services, including wireless handsets, digital entertainment devices, wireless accessories, set-top boxes, and video distribution systems.
Motorola Solutions Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 62 cents per share, a rise of 8.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 61 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 62 cents during the last month. For the year, analysts are projecting net income of $2.76 per share, a rise of 21.6% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting profit of 50 cents per share against a mean estimate of net income of 47 cents per share.
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A Look Back: In the first quarter, profit fell 68.4% to $157 million (49 cents a share) from $497 million ($1.44 a share) the year earlier, but exceeded analyst expectations. Revenue rose 3.8% to $1.96 billion from $1.88 billion.
Stock Price Performance: Between July 13, 2012 and July 23, 2012, the stock price rose $.71 (1.57%), from $45.18 to $45.89. The stock price saw one of its best stretches over the last year between January 25, 2012 and February 1, 2012, when shares rose for six straight days, increasing 3.5% (+$1.56) over that span. It saw one of its worst periods between July 3, 2012 and July 12, 2012 when shares fell for seven straight days, dropping 6.5% (-$3.16) over that span.
Wall St. Revenue Expectations: Analysts are projecting a rise of 2.4% in revenue from the year-earlier quarter to $2.11 billion.
On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 62% in the second quarter of the last fiscal year, 57% in the third quarter of the last fiscal year and 60.6% in the fourth quarter of the last fiscal year before climbing in the first quarter.
After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 37.2% in the fourth quarter of the last fiscal year and then again in the first quarter.
Analyst Ratings: With six analysts rating the stock as a buy, two rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.06 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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