Motorola Solutions +3.7% post-earnings; enterprise performance improves

|About: Motorola Solutions, Inc. (MSI)|By:, SA News Editor

Motorola Solutions (MSI) now expects 2013 revenue to be flat Y/Y; the company previously guided for revenue to be flat to up 1%, which itself was lower than prior guidance for 3%-4% growth.

However, following a big Q3 EPS beat, full-year EPS from continuing ops is expected to be in a range of $4.63-$4.70, above a $4.43 consensus.

Government sales (69% of revenue), hurt by the shutdown, fell 4% Y/Y in Q3 after dropping 1% in Q2. But enterprise sales saw a bit of a turnaround, rising 2% after falling 5% in Q2.

The government division had a $299M op. profit, -4% Y/Y. Enterprise had a $98M op. profit, +27% Y/Y and contributing to the EPS beat.

EPS also received a lift from $425M in buybacks. Gross margin was 48.9%, +10 bps Q/Q and -100 bps Y/Y.

No details were given on Motorola's plans for its enterprise Wi-Fi unit, which the company is reportedly thinking of selling.

Q3 results, PR