Motorola Solutions has again upped its full year outlook after reporting another strong quarter highlighting the continued strengthen of the company’s land mobile radio business and momentum in services and software. CEO Greg Brown said the higher than expected figures, strong cash generation and highest backlog position ever for a Q2, position Motorola for continued growth.
Revenues for the second quarter passed guidance to rise 18 percent from the year before to USD 1.760 billion, driven by growth in all regions. Organic revenue growth amounted to 6 percent while about USD 154 million of revenue growth was due to acquisitions. Products lifted 14 percent, while Services advanced 27 percent, both led by the Americas and EMEA.
The net profit lifted to USD 180 million from 131 million. Earnings per share rose 35 percent to USD 1.05 while adjusted EPS went 30 percent higher, to USD 1.46. The company ended the quarter with a backlog of USD 9.4 billion, up by USD 919 million year-on-year. The operating profit advanced 5 percent to USD 273 but the margin slid to 15.5 percent from 17.4 percent, pulled down by higher acquisition related transaction costs. The operating cash flow climbed to USD 425 million from 173 million while the free cash flow amounted to USD 384 million.
For the third quarter, Motorola is guiding for revenues up 13 percent year-on-year, with adjusted EPS of USD 1.67-1.72.
For the full year, the company now sees revenue up 14.5 percent, from its previous forecast of 14 percent. Adjusted EPS is now expected at USD 6.79-6.89, from the prior guidance of 6.70-6.85.
