Motorola Solutions Earnings: Expands Profit Margin, Reduces Debts

S&P 500 (NYSE:SPY) component Motorola Solutions, Inc. (NYSE:MSI) reported net income above Wall Street’s expectations for the first quarter. Motorola Solutions Inc provides technologies, products and services, including wireless handsets, digital entertainment devices, wireless accessories, set-top boxes and video distribution systems.

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Motorola Solutions Earnings Cheat Sheet for the First Quarter

Results: Net income for Motorola Solutions, Inc. rose to $497 million ($1.06/share) vs. $69 million (21 cents/share) in the same quarter a year earlier. A substantial increase from the year earlier quarter.

Revenue: Rose to $1.88 billion YoY.

Actual vs. Wall St. Expectations: MSI reported adjusted net income of 54 cents per share. By this measure, the company beat the mean analyst estimate of 32 cents/share. Estimates ranged from 30 cents per share to 34 cents per share.

Key Stats: Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 14.6 percentage points to 50% from the year earlier quarter. Over that span, margins have grown on average 4.9 percentage points per quarter on a year-over-year basis.

From the fourth quarter of the last fiscal year, the company’s current liabilities fell to $4.9 billion from $8.71 billion.

Over the last five quarters, revenue has increased 5594.2% on average year over year. The biggest increase came in the second quarter of the last fiscal year, when revenue rose 14450.6% from the year earlier quarter.

Competitors to Watch: Nokia Corporation (NYSE:NOK), Siemens AG (NYSE:SI), Motorola Mobility Hldgs. Inc (NYSE:MMI), Polycom, Inc. (NASDAQ:PLCM), Cisco Systems, Inc. (NASDAQ:CSCO), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), EMS Technologies, Inc. (NASDAQ:ELMG), Harris Corporation (NYSE:HRS), CalAmp Corp. (NASDAQ:CAMP), Research in Motion (NASDAQ:RIMM), Sprint (NYSE:S), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Dell (NASDAQ:DELL) and Proxim Wireless Corp. (PRXM).

Today’s Performance: Shares of MSI are trading at $43.42 as of April 28, 2011 at 8:41 AM ET, unchanged from the previous close.


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