Motorola forecasts quarterly adjusted profit above estimates on strong demand
13/02/2025 22:22
Feb 13 (Reuters) - Safety and enterprise security services provider Motorola Solutions
MSI.N forecast first-quarter adjusted profit above Wall Street estimates on Thursday, driven
by higher demand for its safety and security services.
Government agencies and businesses have been making efforts to strengthen their security and
communication infrastructure, aiming to prevent disruptions to operations caused by
cyberattacks, benefiting Motorola.
"Strong demand for our safety and security solutions, together with our record backlog,
positions us well for another year of strong growth," said CEO Greg Brown.
J.P. Morgan analysts see potential factors driving broader demand in the public safety
market this year due to a heightened focus on crime reduction in major cities and enhanced
border security, prompting higher investments from key customers such as the police and border
patrol.
Motorola's backlog remains at record levels with a strong upgrade cycle for land mobile
radio in the early innings, along with robust demand for video analytics solutions across
various industries, they said in a note on Monday.
Chicago, Illinois-based Motorola's shares rose 2% in extended trading.
Motorola provides critical communications gear including walkie-talkies, video-surveillance
cameras, and software solutions, helping communities served by its customers during
emergencies.
In January, Motorola said it would acquire Theatro Labs, a company that makes AI and
voice-powered communication and digital workflow software for frontline workers.
Motorola expects first-quarter adjusted profit per share between $2.98 and $3.03, above
analysts' average estimate of $2.93 per share, according to data compiled by LSEG. Revenue
growth is expected to range from 5% to 5.5%.
For fiscal 2025, Motorola forecast adjusted profit between $14.64 and $14.74 per share, the
midpoint of which is above estimates of $14.67 per share.
The company sees annual revenue growth of about 5.5%.
Motorola's revenue for the fourth-quarter ended December 31 was $3.01 billion, slightly
above estimates of $2.99 billion.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
((Juby.Babu@thomsonreuters.com))