Motorola Solutions Inc.
) reported mixed financial results for the third quarter of 2013,
where the company's bottom line surpassed the Zacks Consensus
Estimate but the top line missed the same.
Quarterly GAAP net income from continuing operations was $307
million or $1.16 per share compared with $206 million or 72 cents
per share in the prior-year quarter. Adjusted earnings per share
of $1.32 were significantly higher than the Zacks Consensus
Estimate of 92 cents. However, quarterly total revenue was $2,112
million, down 1.9% year over year and also below the Zacks
Consensus Estimate of $2,128 million.
Quarterly gross margin was 49.4% against 50.5% in the prior-year
quarter. Operating income, in the reported quarter, was $320
million, down 1.2% year over year. Quarterly operating margin was
15.2% compared with 15% in the prior-year quarter. In the
reported quarter, Motorola Solutions repurchased shares worth
Motorola Solutions generated $152 million in cash from operations
in third-quarter 2013 compared with $182 million in the year-ago
quarter. Quarterly free cash flow was $116 million versus $143
million in the year-ago quarter.
At the end of the third quarter of 2013, Motorola Solutions had
$2,890 million in cash, cash equivalents and marketable
securities compared with $3,603 million at the end of 2012. Total
debt, at the end of the reported quarter, was $2,458 million
compared with $1,859 million at the end of 2012. The
debt-to-capitalization ratio at the end of third -quarter 2013
was 0.48 compared with 0.36 at the end of 2012.
Quarterly total revenue was $1,465 million, down 4% year over
year. Operating income came in at $252 million, down 8% from the
Quarterly total revenue was $647 million, up 2% year over year.
Operating income stood at $68 million, down 33% year over year.
Performance by Category
Quarterly Product revenues were $1,482 million, down 5.4% year
over year. Services revenues were $630 million, up 7.5% year over
year. Quarterly Product gross margin was 54.5% compared with
56.5% in the year-ago quarter. Services gross margin was 37.3%
against 34.5% in the comparable year-ago quarter.
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Motorola Solutions expects revenues for full fiscal 2013 to
remain flat with the last fiscal. Non-GAAP earnings per share
from continuing operations for fiscal 2013 are expected in the
range of $4.63 to $4.70, while Non-GAAP operating income is
expected to be 18% of the total revenue.
Motorola Solutions currently has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other stocks worth considering in this sector include
Novatel Wireless Inc.
). All three carry a Zacks Rank #2 (Buy).