A Snapshot Of Motorola Solutions’ Business

February 26th, 2018 by Trefis Team
+0.27%
Upside
339
Market
340
Trefis
MSI: Motorola Solutions logo
MSI
Motorola Solutions

Motorola Solutions (NYSE:MSI) generates its revenues primarily from two business segments, namely Products – which sells communications systems including land mobile radios; and Services, which provides end-to-end solutions ranging from implementation to support services. We have created an interactive dashboard highlighting some of the key items from Motorola Solutions income statement. You can adjust our forecasts for revenues and margins for the company to see how it impacts earnings. Below, we provide a summary of the interactive dashboard.

Motorola Solutions Revenue Breakdown

  • The products division accounts for about 60% of the company’s revenues
  • Services segment accounts for the remaining 40%.

Relevant Articles
  1. Up 30% In The Last 12 Months, Will Motorola Solutions Stock Rally Further Following Q4 Results?
  2. What’s Happening With Motorola Solutions Stock?
  3. What’s Happening With Motorola Solutions Stock?
  4. Motorola Solutions Stock Has More Than Doubled Market Returns Since 2018- Here’s Why
  5. Motorola Solutions Stock Has Almost Doubled The S&P’s Returns Since 2018- Here’s Why
  6. Motorola Solutions Inc. Stock Looks Set To Continue Its Rally

Product Revenue Trends

  •  We expect Motorola’s product revenues to trend slightly higher, driven by acquisitions such as the recent purchase of Avigilon and sales to overseas customers.
  • However, we believe that margins could trend lower, as these sales are likely to be less lucrative compared to U.S. land mobile radio sales.
  • The company’s product backlog stands at about $1.9 billion.

Service Revenue Trends

  • We expect MSI’s services revenues to trend upwards driven by recent acquisitions, higher software-related sales and potentially higher LTE-based public safety applications.
  • MSI Services segment backlog stood at $7.7 billion at the end 2017, up $860 million or 12% compared to Q4 2016.

Margins and EPS

  • We expect adjusted EBITDA margins to trend lower, due to a higher services mix and lower products margins.
  • However, net income & EPS should see a boost from the reduction of U.S. tax rate.

 

Don’t Agree With Our Forecast? Feel Free To Create Your Own By Making Changes To Our Model

What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs

For CFOs and Finance Teams | Product, R&D, and Marketing Teams

More Trefis Research

Like our charts? Explore example interactive dashboards and create your own