Motorola Solutions, Inc.
) is slated to report its first-quarter 2014 results before the
opening bell on May 1, 2014.
In the last quarter, the company delivered a positive 4.67%
earnings surprise. Let's see how things are shaping up for the
company prior to the announcement.
Factors to be Considered This Quarter
Motorola Solutions is the largest developer of public safety
products commanding nearly half of the total market share in the
U.S. The company is also the largest manufacturer of barcode
readers and small rugged mobile computers. Motorola Solutions'
business strategy to focus only on stable government enterprises
will help the company maintain its solid performance in the near
Motorola Solutions caters to a large set of industries
including Transportation & Logistics, Hospitality, Public
Safety, Retail, Wholesale Distribution, Oil & Natural Gas,
Utilities, to name a few. The company has won several lucrative
contracts from various municipalities in the U.S. Outside the
U.S., the company is expanding in Europe, the Middle East,
Australia, and Latin America.
Continuous contract wins, innovative product launches coupled
with the rising popularity of its ASTRO system are likely to spur
growth for the company in the coming quarters. However, a
sluggish economy, slashed outlook and phasing out of iDEN network
may act as headwinds for the company moving ahead.
Our proven model does not conclusively show that Motorola
Solutions is likely to beat the Zacks Consensus Estimate this
quarter. This is because a stock needs to have both a positive
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to
happen. Unfortunately, this is not the case here as elaborated
Negative Zacks ESP:
Earnings ESP represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate. This leads to an ESP
of -7.32% for Motorola Solutions as the Most Accurate estimate
stands at $0.38 while the Zacks Consensus Estimate is higher at
Zacks Rank #4 (Sell):
Motorola Solutions' Zacks Rank #4 decreases the predictive power
The Sell-rated stocks (Zacks Rank #4 and 5) should never be
considered going into an earnings announcement.
We caution investors against the stock going into the earnings
announcement, as an Earnings ESP of -7.32% combined with a Zacks
Rank #4 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some companies to consider as our model shows these
have the right combination of elements to post an earnings beat
America Movil S.A.B. de C.V.
) with Earnings ESP of +9.76% and Zacks Rank #3.
) with Earnings ESP of +11.11% and Zacks Rank #3.
Charter Communications, Inc.
) with Earnings ESP of +40.0% and Zacks Rank #3.
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CHARTER COMM-A (CHTR): Free Stock Analysis
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