Motorola Solutions Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Motorola Solutions (NYSE:MSI) will unveil its latest earnings on Wednesday, October 24, 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 net income of 61 cents per share, a rise of 8.9% 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 69 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 61 cents during the last month. Analysts are projecting profit to rise by 16.3% compared to last year’s $2.64.

Past Earnings Performance: Last quarter, the company missed estimates by 2 cents, coming in at profit of 60 cents per share versus a mean estimate of net income of 62 cents per share. In the first quarter, the company beat estimates by 3 cents.

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A Look Back: In the second quarter, profit fell 47.9% to $182 million (61 cents a share) from $349 million ($1 a share) the year earlier, missing analyst expectations. Revenue rose 4.5% to $2.15 billion from $2.06 billion.

Stock Price Performance: Between August 22, 2012 and October 18, 2012, the stock price had risen $3 (6.3%), from $47.76 to $50.76. 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.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.42 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.

Key Stats:

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 37.2% in the fourth quarter of the last fiscal year, by 68.4% in the first quarter and again in the second quarter.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 3.8% in the first quarter before climbing again in the second quarter.

Wall St. Revenue Expectations: Analysts are projecting a rise of 2.4% in revenue from the year-earlier quarter to $2.15 billion.

Analyst Ratings: With six analysts rating the stock as a buy, one rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

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

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