- Though Motorola Solutions (NYSE:MSI -5.1%) beat Q1 estimates (moreso on EPS than revenue), Q2 EPS guidance of $0.82-$0.88 is below a $0.95 consensus. Q2 revenue is expected to be up 1%-3% Y/Y, and assumes $130M in revenue from Motorola's recent $1.2B acquisition of U.K. public safety network owner Airwave (closed in February).
- Full-year guidance for 5%-7% revenue growth and EPS of $4.45-$4.65 (compares with a consensus for 5.4% growth and $4.58) is affirmed. The guidance still assumes $450M in Airwave revenue.
- In spite of $61M in Airwave revenue, total revenue fell 2% Y/Y in Q1 to $1.19B - Motorola blames Europe/LatAm weakness and forex. Product revenue fell 7% to $702M, and (excluding Airwave) services revenue 8% to $430M.
- Boosting EPS: Op. margin rose 110 bps Y/Y to 13.9%. $64M was spent on buybacks. Motorola ended Q1 with $1.9B in cash and $5B in debt.
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Motorola's Q1 report, earnings release