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Motorola Solutions, Inc. (MSI)

  • 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.
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  • Mon, Feb. 9, 9:12 AM
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  • 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
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  • 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.
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  • Apr. 16, 2014, 9:55 AM
    • Yelp (YELP +2.1%) has been upgraded to Buy by Citi.
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    • 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.
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    • IPO underwriters have given A10 Networks (ATEN +3.7%) five bullish ratings and one neutral one.
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  • 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.
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  • Mar. 12, 2014, 9:36 AM
    • Infinera (INFN +7.9%) has been upgraded to Buy by Goldman, and fellow telecom equipment maker Calix (CALX +3.4%) has been upgraded to Neutral.
    • Motorola Solutions (MSI -3.9%) has been cut to Sell by Goldman.
    • Mellanox (MLNX +3.3%) has been started at Buy by Nomura.
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  • 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.
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  • Jan. 21, 2014, 9:57 AM
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    • 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.
  • Oct. 23, 2013, 9:23 AM
    • 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
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  • Jul. 24, 2013, 10:37 AM
    Motorola Solutions (MSI -9.8%) falls hard after providing soft guidance to go with mixed Q2 results. The company expects Q3 revenue to be flat to -3% Y/Y, and EPS of $0.97-$1.02, below a consensus for 4.7% growth and $1.25. The guidance overshadows a 19% hike in the networking hardware firm's dividend to $0.31/share (yield is now at 2.3%), and a new $2B buyback authorization (available funds now at $2.5B). A 5% Y/Y drop in enterprise sales (-12% exc. the Psion purchase) pressured Q2 results. Government sales (69% of revenue) fell 1% after rising 3% in Q1. Enterprise op. margin fell 410 bps Y/Y to 11.9%, government op. margin rose 120 bps to 17.6%. (PR)
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  • Jun. 19, 2013, 2:42 PM
    Aside from Linn Energy (LINE +6%) (earlier), SandRidge Energy (SD +3.2%) also enjoys a sustained rise from Lee Cooperman's CNBC comments. He thinks SD's assets are worth close to $10/share and expects management changes in the coming weeks. The full list of stocks Cooperman likes (video): TCRD, ESRX, HAL, RIG, QCOM, MSI, CIM, S, DISH, ARP.
  • May. 7, 2013, 7:02 PM
    Though Ruckus (RKUS -26.2%) claims its Q1 miss and soft guidance aren't tied to competition, "it is difficult to reconcile the implied disparity between Ruckus’ growth and that of the overall [carrier] Wi-Fi market," says Lazard, discussing its downgrade to Neutral. However, other companies, such as F5 and Fortinet, have also reported soft carrier demand for discretionary projects. Meanwhile, Raymond James thinks Ruckus and Aruba's (ARUN -22.8% - previous) warnings, along with Motorola Solutions' (MSI) guidance, suggests enterprise Wi-Fi growth is slowing.  Market leader Cisco (CSCO -2%), whose Wi-Fi unit posted 27% Y/Y growth last quarter, reports on May 15.
  • Apr. 24, 2013, 10:12 AM
    A Q1 miss and soft guidance lead Motorola Solutions (MSI -9.3%) to dive. The enterprise/government networking hardware provider expects Q2 revenue to be flat to down 2% Y/Y and EPS to come in at $0.66-$0.71, below a consensus of 4.6% growth and $0.86. Moreover, MSI now forecasts full-year revenue growth of 3%-4%, below a 5.3% consensus. Government sales rose 3% Y/Y in Q1 (down from +10% in Q4), while enterprise sales fell 4%, and would've dropped 12% if not for the acquisition of handheld computer vendor Psion (-3% in Q4 inc. Psion, -12% otherwise). Gross margin fell 130 bps Y/Y to 48.4%. (PR)
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  • Feb. 14, 2013, 2:37 PM
    Tiger Global still owned nearly 10% of Groupon (GRPN - previous) at the end of Q4, the money manager discloses in its latest 13F. However, Tiger liquidated its sizable positions in LinkedIn (LNKD - 2M shares), Facebook (FB -11.8M shares), and Google (GOOG - 698K shares). A 1M-share position was established in First Solar (FSLR), a 525K-share position in Workday (WDAY), a 3.8M-share position in YY (YY +4.5% - spiking higher) , and a 1.5M-share position in Motorola Solutions (MSI).
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Company Description
Motorola Solutions Incdesigns, 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.