Motorola Solutions: Strong Earnings Amidst Mixed Market Performance
Company Overview and Market Position
Valued at a market cap of $70.4 billion, Motorola Solutions, Inc. (MSI) stands as a prominent player in mission-critical communications and security. Based in Chicago, Illinois, the company focuses on technologies for public safety agencies, enterprises, and governmental organizations. Its areas of expertise include land mobile radio (LMR) communications, video security and analytics, and command center software.
Performance Insights
Over the last year, MSI’s shares have outperformed the broader market significantly, with a gain of 29.9%. In contrast, the S&P 500 Index ($SPX) has risen by about 20.7%. However, in 2025, MSI stock has faced challenges, dropping 8.7% so far, while the SPX has seen a modest increase of 2.2% year-to-date.
Comparing ETFs
When comparing performance more closely, MSI has not fared as well against the SPDR S&P Telecom ETF (XTL), which has increased by roughly 45.3% over the past year and is up 2% in 2025.
Recent Earnings Report
On February 13, Motorola Solutions released its Q4 earnings report, which, while solid, led to a more than 6% drop in shares the next trading day. The adjusted EPS of $4.04 exceeded expectations, and revenues reached $3.01 billion, surpassing market estimates. Looking ahead to Q1 2025, the company anticipates revenue growth between 5.0% and 5.5%, with projected non-GAAP EPS ranging from $2.98 to $3.03.
Analysts’ Expectations
For the current fiscal year ending in December, analysts predict MSI’s EPS will grow by 5.5% to $13.43 on a diluted basis. Notably, the company has beat earnings consensus estimates in each of the last four quarters which speaks to its operational strength.
Analyst Ratings
The consensus among 11 analysts covering MSI stock is a “Moderate Buy,” reflecting seven “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.” This configuration indicates a less bullish sentiment compared to the previous month when eight analysts issued “Strong Buy” ratings.
Price Target Adjustments
On February 18, Morgan Stanley (MS) raised its price target for Motorola Solutions from $495 to $505, while maintaining an “Equal-Weight” rating. The average price target now sits at $522.12, indicating a potential upside of 23.8% from current levels. The highest target on the Street is $570, suggesting an even greater upside potential of 35.1%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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