Key Stats for Motorola Solutions Stock
- Price change for Motorola Solutions stock In last 6 months: 12%
- $MSI Stock Price as of Aug. 6: $474
- 52-Week High: $494
- $MSI Stock Price Target: $509
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What Happened?
Motorola Solutions (MSI) stock is climbing after the company posted a strong Q2 and raised its full-year outlook.
- Non-GAAP earnings came in at $4.41 per share, well above the $3.85 Wall Street expected.
- Revenue hit $3.13 billion, growing 13.3% from a year ago and easily topping the $3.0 billion analysts had penciled in.
- The beat wasn’t limited to one part of the business. Video revenue grew 12%, while Command Center software climbed 14%.
- Motorola also raised its annual revenue guidance for Silvus, its drone and battlefield communications unit, to $850 million.
- Backlog reached a record $15.6 billion, up 11% from last year, giving investors confidence in future demand.
- Following the results, Motorola Solutions raised its full-year revenue guidance to approximately $12.98 billion, up from $12.8 billion previously.
- Full-year non-GAAP earnings guidance also moved higher, to a range of $17.62 to $17.72 per share, up from $16.87 to $16.99.
Two major Wall Street firms responded by lifting their price targets. UBS moved its target to $520 from $510, while BofA Securities raised its target to $530 from $500.
Both firms kept Buy ratings on Motorola Solutions stock.
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What the Market Is Telling Us About Motorola Solutions Stock
The market reaction shows investors were more worried than they needed to be heading into this report.
UBS noted that concerns about a slowdown in the company’s Land Mobile Radio (LMR) business, and about the company’s second-half performance, had built up alongside elevated short interest. This quarter’s results appear to have eased those fears.
UBS also pushed back on the idea that slower LMR growth signals a real problem. The firm views it as a normal cooldown after several unusually strong years, when supply chain issues had pushed extra demand into the business.
In other words, the slowdown looks more like timing than a sign that public safety agencies are pulling back.
With Video, Command Center, and Silvus all showing double-digit growth, Motorola Solutions stock is benefiting from strength across multiple business lines rather than just one segment carrying the results.
The company has also raised its dividend for 15 straight years, which continues to support its reputation as a steady, shareholder-friendly compounder.
Trading at a P/E of around 35, Motorola Solutions stock isn’t cheap, and some valuation models suggest it may be priced above fair value today.
Still, with earnings estimates and price targets both moving higher after this report, analysts appear comfortable paying up for the company’s consistent execution and improving growth outlook.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
