Motorola Q3 Profit Down But Beats Street View; Lifts FY22 Outlook

(RTTNews) - Motorola Solutions, Inc. (MSI) on Thursday posted lower income in its third-quarter, hit by impairment costs. Third-quarter income came in above the Street expectations. The company's revenue was up and it lifted its outlook for the year ahead. The company posted net income of $279 million or $1.63 per share in the third quarter, down from $307 million or $1.76 per share in the same period last year.

Excluding items, earnings per share rose 28 percent to $3.00 from $2.35 a year ago. The decline in income is inclusive of a $147 million fixed asset impairment for the now expected exit from the ESN contract Net sales rose to $2.37 billion from $2.11 billion a year ago. On average, analysts expected the company to post earnings of $2.88 per share on revenues of $2.31 billion for the quarter. Looking ahead, for the fourth quarter, the company expects adjusted earnings per share between $3.40 to $3.45. Revenue growth of around 9 percent is expected, compared to the fourth quarter of 2021. Analysts expect the company to post earnings per share of $3.43 in the fourth quarter on revenue growth of 7.90%. The company lifted its outlook for full-year 2022. It now expects revenue growth of between 9.25 percent and 9.5 percent, up from its prior guidance of approximately 8 percent, and adjusted EPS of between $10.17 and $10.22 per share, up from its prior guidance of between $10.03 and $10.13 per share. On average, analysts expect the company to post earnings of $10.08 per share on revenue growth of 8.50%.