Wed, Nov. 4, 11:16 AM
- Though Motorola Solutions (NYSE:MSI) beat Q3 estimates, it's guiding for Q4 revenue to be down 6%-8% Y/Y and EPS of $1.45-$1.50, below a consensus for a 0.8% revenue decline and EPS of $1.57.
- The guidance is blamed on "further weakness in Latin America and incremental currency pressure." Forex is expected to have a $65M Q4 revenue impact.
- Product revenue rose less than 1% Y/Y to $925M; services fell 3% to $497M. Gross margin rose 50 bps Y/Y to 48.2%, SG&A spend fell to 18.2% of revenue from 20%, and R&D to 10.8% of revenue from 11.6%. North America (sales +5% Y/Y) was a strong point.
- $2.1B was spent on buybacks, thanks to the $2B tender offer launched following the Silver Lake deal. Motorola ended Q3 with $2.2B in net debt.
- Q3 results, PR
Tue, Oct. 20, 12:28 PM
- Motorola Solutions (MSI +0.9%) has unveiled two devices - the Si500 and Si300 - it claims are the first to integrate a body camera, a radio speaker, and microphone. The Si500 has a 210-degree range-of-motion lens, an adaptive audio engine, a 3.2" display, and built-in Wi-Fi/Bluetooth.
- Also launching: A cloud-based video evidence storage/management solution known as CommandCentral Vault. Motorola promises a "highly streamlined ability to search, review, annotate and perform other evidence management," as well as "an industry-leading auto-redaction feature to help public safety agencies remove identities of individuals in videos seamlessly." It's also partnering with Adobe to integrate the product with Adobe's Creative Cloud and Marketing Cloud platforms.
- Taser (TASR -7.8%) and Digital Ally (DGLY -5.4%), both of whom have seen interest in their body camera and evidence management offerings jump over the last 14 months in the wake of the Ferguson unrest, are selling off.
Fri, Sep. 11, 10:48 AM
- Declaring shares to be "significantly mispriced" following their recent rally, Wells Fargo has downgraded Motorola Solutions (MSI -2.6%) to Underperform, and set a $60.50-$62.00 valuation range.
- Wells notes the market for public safety communications hardware is mature, and thinks the market's adoption of LTE networks (could lead to new competition from 4G hardware OEMs) presents a long-term challenge.
- The downgrade comes a day after Motorola announced the results of its $2B public tender (first announced in early August, along with Silver Lake's $1B investment). 30.1M shares were repurchased at $66.50 apiece.
Wed, Aug. 5, 9:19 AM
- Gainers: FNJN +60%. BIOC +13%. FSLR +11%. KATE +9%. Z +9%. HRB +8%. OAS +8%. TSEM +8%. PCLN +7%. SLTD +7%. MSI +6%. ATVI +6%. SUPN +6%. LC +6%. CTSH +6%. BBL +6%. SDRL +5%.
- Losers: SALE -33%. OHGI -28%. LL -24%. BOOT -23%. ETSY -20%. TRMB -13%. GLUU -10%. RSO -10%. DIS -9%. NYMT -7%. MEMP -7%. GNW -7%. PWR -7%. CERN -6%. PZZA -6%.
Wed, Aug. 5, 7:59 AM
- Motorola Solutions (NYSE:MSI) +7.8% premarket after announcing it is receiving a $1B investment from the Silver Lake P-E firm aimed at stepping up growth in public safety products.
- The investment is a so-called private investment in public equity, or PIPE, a form of debt that can be converted into common stock.
- Silver Lake managing directors Egon Durban and Greg Mondre will join MSI's board when the deal closes, likely during Q3.
- In its Q2 earnings report, MSI also issued downside guidance for Q3, seeing EPS of $0.68-$0.73 vs. $0.83 analyst consensus, and revenues down 2%-3% Y/Y, or $1.39B-$1.42B vs. $1.43B consensus; reaffirms full-year guidance, seeing EPS of $3.20-$3.40 vs. $3.27 consensus, and revenues flat to down 2%, or $5.76B-$5.88B vs. $5.81B consensus.
- MSI also says it plans to repurchase up to $2B of stock through a tender offer.
Thu, May 7, 11:56 AM
- Gabelli has upgraded Motorola Solutions (NYSE:MSI) to Buy a day after the company beat Q1 estimates and offered mixed guidance. Raymond James has upgraded to Market Perform.
- Raymond James: "1Q results were better than expected and much better than feared given the forex headwind. Share repurchase was stronger, backlog was flat sequentially and y/y despite a $150 million forex headwind, which is a strong performance in a seasonally weak quarter for backlog trends."
- In spite of the Q1 beat, Motorola has guided for Q2 revenue to fall 3%-5% Y/Y, and EPS to be in a range of $0.51-$0.56. That's below a consensus for a 2.1% revenue drop and EPS of $0.59. However, full-year revenue growth guidance of flat to -2% has been maintained, and full-year EPS guidance hiked by $0.05 to $3.20-$3.40; consensus was for a 1.2% drop and EPS of $3.25.
- The company spent $653M on buybacks in Q1 (boosted EPS). Product revenue rose 1% Y/Y to $758M; services revenue fell 2% to $465M.
Thu, Apr. 2, 2:20 PM
- Bloomberg reports Motorola Solutions (NYSE:MSI) has failed to find a buyer after trying to do so for months.
- The news service reported two months ago Motorola, which counts activist ValueAct as a big shareholder and has unloaded its enterprise hardware unit to Zebra Technologies, was working with advisors to find an acquirer.
Mon, Feb. 9, 9:12 AM
Fri, Feb. 6, 6:01 PM
- Bloomberg reports Motorola Solutions (NYSE:MSI) is exploring a possible sale.
- The company is just a few months removed from unloading its enterprise hardware unit, and counts activist ValueAct Capital as a major investor.
- Shares have risen to $68.00 in AH trading.
- Update (6:14PM): The full story is now out. Bloomberg states Motorola is "working with financial advisers as it seeks a buyer," and that "the sale process has been underway for several months, though a transaction isn’t imminent." A source thinks P-E firms and defense contractors could be interested.
Nov. 4, 2014, 10:41 AM
- With the company having just reaped $3.45B from the sale of its enterprise hardware unit to Zebra Technologies, Motorola Solutions (MSI +3.2%) has added $5B to its buyback authorization, raising its available funds to $5.6B. $650M was spent on buybacks in Q3.
- Motorola is guiding for Q4 revenue from continuing ops (heavily focused on government sales) to fall 1%-3% Y/Y. EPS guidance is at $1.13-$1.19, mostly below a $1.19 consensus.
- Q3 product revenue from continuing ops -8% Y/Y to $921M; services revenue -1% to $515M. Gross margin fell 270 bps Y/Y to 47.7%, and GAAP opex 10% to $453M.
- The company says its cost-cutting is "ahead of schedule," and that it's on track to achieve $300M/year in opex savings by the end of 2015.
- Q3 results, PR
Aug. 5, 2014, 10:56 AM
- Motorola Solutions (MSI -3.1%) is guiding for Q3 revenue to drop 7%-9% Y/Y. EPS from continuing ops, which exclude an enterprise unit that will soon be acquired by Zebra Technologies (ZBRA -5.4%) for $3.45B, is expected to be in a range of $0.35-$0.41.
- The consensus, which includes enterprise sales, is for 0.3% revenue growth and EPS of $1.02. Motorola still expects a full-year revenue decline in the low-to-mid single-digit range.
- Not counting the enterprise unit, Motorola's product revenue fell 10% Y/Y in Q2 to $887M, and its services revenue (driven by past deals) fell 1% to $506M. Gross margin was down 300 bps Y/Y to 47.1%. EPS received a lift from $416M in buybacks.
- The enterprise unit saw revenue drop 8% Y/Y to $560M. Motorola blames "some supply chain and IT execution issues related to transitioning business processes as well as weaker demand in Asia."
- That figure is overshadowing a Q2 beat for Zebra. The inventory/location-tracking hardware firm is guiding for Q3 revenue of $285M-$295M and EPS of $0.81-$0.91 vs. a consensus of $291.3M and $0.88.
- Motorola: Q2 results, PR. Zebra: Q2 results, PR.
Apr. 16, 2014, 9:55 AM
- Yelp (YELP +2.1%) has been upgraded to Buy by Citi.
- Cree (CREE +2%) has been upgraded to Buy by Needham ahead of its April 22 FQ3 report.
- Youku (YOKU +1.2%) has been upgraded to Neutral by Goldman.
- SouFun (SFUN +5.4%) has been upgraded to Buy by Goldman.
- Motorola Solutions (MSI -1.6%) has been cut to Neutral by Nomura a day after announcing the Zebra Technologies deal and issuing a Q1 warning.
- Control4 (CTRL +7%) has been upgraded to Strong Buy by Raymond James. Q1 results are due on May 1.
- Nimble Storage (NMBL +5.4%) has been upgraded to Buy by UBS.
- J2 Global (JCOM +7.1%) has been upgraded to Buy by Sidoti.
- Xoom (XOOM +1.4%) has been upgraded to Equal Weight by Evercore ahead of its April 22 Q1 report.
- Bitauto (BITA +9.1%) has been started at Outperform by Credit Suisse. Rival Autohome (ATHM +9.8%) has been started at Neutral, but is also up sharply.
- IPO underwriters have given A10 Networks (ATEN +3.7%) five bullish ratings and one neutral one.
Apr. 15, 2014, 2:26 PM
- Zebra Technologies (ZBRA -11.1%) aren't thrilled with the company's plans to spend $3.45B in cash to buy Motorola Solutions' (MSI -1.3%) enterprise hardware/software unit. (FT report)
- Zebra, which had only $416M in cash/investments at the end of 2013, says it will pay with $200M in cash on hand and $3.25B in new debt. Zebra's current market cap only stands at $3.05B. The deal is expected to close by year's end.
- Motorola's enterprise unit offers barcode scanners and RFID readers that complement Zebra's inventory/location-tracking and specialized printing products. It also sells Wi-Fi hardware, interactive kiosks, handheld computers, and two-way radios.
- The unit had 2013 pro forma sales of $2.5B, easily surpassing Zebra's 2013 sales of $1B. But it has been struggling: Sales were down 2% in 2013, and op. income fell 9% to $358M.
- Along with the deal, Motorola has announced it expects to report Q1 revenue of $1.8B (-9% Y/Y) and EPS of $0.50, below a consensus of $1.88B and $0.51. 2014 revenue is now expected to fall by a single-digit %; the consensus is for a 0.7% increase.
- Excluding acquisition expenses, Zebra expects to report Q1 revenue of $287M-$289M and EPS of $0.88-$0.91, above a consensus of $281.6M and $0.83.
Mar. 12, 2014, 9:36 AM
Jan. 22, 2014, 11:23 AM
- Though its Q4 results beat estimates, Motorola Solutions (MSI -3.9%) is guiding for Q1 revenue to be down 4%-6% Y/Y, and for EPS to be in a range of $0.46-$0.52. That's below a consensus for 2.4% revenue growth and EPS of $0.77. Motorola is also guiding for 2014 revenue to be flat to up 2%, worse than a consensus for 3.2% growth.
- Motorola's government sales (71% of revenue) rebounded a bit in Q4, rising 4% Y/Y after declining 4% in Q3. However, the division's op. profit fell 4% to $332M.
- Enterprise sales were flat after rising 2% in Q3. Op. profit rose 5% to $81M.
- Gross margin fell 190 bps Y/Y to 48.4%. Thanks to job cuts, SG&A spend fell 8% to $471M, and R&D spend 6% to $272M.
Jan. 21, 2014, 9:57 AM
- 3D Systems (DDD -3%) has been cut to Neutral by Credit Suisse.
- Seagate (STX +2.1%) has been upgraded to Overweight by Morgan Stanley, and rival Western Digital (WDC +0.5%) has been upgraded to Outperform by BMO. Wesern reports tomorrow, and Seagate on Jan. 27.
- SolarCity (SCTY -3.3%) has been cut to Neutral by JPMorgan. Deutsche started shares at Buy last week.
- SanDisk (SNDK -2.3%) has been cut to Neutral by BofA/Merrill. Q4 results arrive tomorrow.
- NetApp (NTAP +2.2%) has been upgraded to Buy by Lake Street Capital.
- InvenSense (INVN -2.8%) has been cut to Hold by Needham.
- FireEye (FEYE -3.7%) has been cut to Neutral by JPMorgan following a huge run-up in the wake of the Mandiant deal and the company's guidance hike.
- Altera (ALTR +2.8%) has been upgraded to Overweight by JPMorgan ahead of Wednesday's Q4 report.
- Tibco (TIBX -2.4%) has been cut to Neutral by Wedbush. Shares rallied last week on a report suggesting Dan Loeb is set to make an activist push.
- NetSuite (N +1.1%) has been upgraded to Buy by Maxim.
- Violin Memory (VMEM -3.7%) has been cut to Underweight by Barclays.
- Motorola Solutions (MSI +1.8%) has been upgraded to Buy by Citi.
- LG Display (LPL +3.2%) has been upgraded to Buy by BofA/Merrill.
Motorola Solutions Inc designs, manufactures and sells communications infrastructure, devices, system software and applications, and provide services associated with their use. Its products include bar code scanners, mobile computers, & among others.
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