Motorola Solutions Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Motorola Solutions (NYSE:MSI) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. 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 net income of 92 cents per share, a rise of 17.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 93 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 92 cents during the last month. Analysts are projecting profit to rise by 21.6% compared to last year’s $2.76.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported profit of 72 cents per share against a mean estimate of net income of 61 cents per share. In the second quarter, it missed forecasts by 2 cents.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the third quarter, profit rose 60.9% to $206 million (72 cents a share) from $128 million (38 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.3% to $2.15 billion from $2.1 billion.

Here’s how Motorola Solutions traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Stock Price Performance: Between October 19, 2012 and January 16, 2013, the stock price rose $7.72 (15.4%), from $50.23 to $57.95. The stock price saw one of its best stretches over the last year between October 10, 2012 and October 17, 2012, when shares rose for six straight days, increasing 2.3% (+$1.16) 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 predict a rise of 6.5% in revenue from the year-earlier quarter to $2.45 billion.

Key Stats:

After some good news last quarter, the company is trying to build on the result with this upcoming earnings announcement. Net income fell in the fourth quarter of the last fiscal year, the first quarter and the second quarter before snapping that run with a profit increase in the third quarter.

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 3.8% in the first quarter and 4.5% in the second quarter before climbing again in the third quarter.

Analyst Ratings: With six analysts rating the stock as a buy, one rating it as a sell and six 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 2.33 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. The company regressed in this liquidity measure from 2.42 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.5% to $3.13 billion while assets rose 0.7% to $7.27 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)