Motorola Solutions Inc (NYSE:MSI) shares are trading lower premarket after it reported fourth-quarter FY23 yesterday.
Sales of $2.85 billion, up 5% Y/Y, beat the consensus of $2.82 billion, led by growth in North America and International.
Sales in the Products and Systems Integration segment grew 4% Y/Y, and Software and Services rose 7% Y/Y in the quarter.
The company ended the year with backlog of $14.3 billion, including solid Products and Systems Integration backlog.
Adjusted operating margin expanded to 30.5% from 30.4% in the year-ago quarter, aided by higher sales and lower direct material costs, partially offset by the revenue reduction for Airwave.
Adjusted operating earnings rose 6% Y/Y to $870 million, and adjusted EPS of $3.90 surpassed the consensus of $3.63.
Operating and free cash flow were both $1.2 billion in the quarter, aided by higher earnings and partially offset by higher cash taxes.
During the quarter, the company paid $146 million in dividends and repurchased shares worth $117 million. During the quarter, Motorola Solutions disclosed a $2.0 billion increase to its share repurchase authorization.
Outlook: Motorola Solutions expects first-quarter adjusted EPS of $2.50-$2.55 vs. $2.37 estimate and 2024 adjusted EPS of $12.62-$12.72 vs consensus of $12.68.
The company expects revenue growth of approximately 8% for the first quarter and about 6% for 2024.
This week, Motorola Solutions penned a strategic, multi-year agreement with Google Cloud to focus on innovating cloud solutions across Motorola Solutions’ safety and security technologies.
Also Read: Motorola’s Latest Tech Leap: The V500 Body Camera Brings Real-Time Insight For First Responders
Price Action: MSI shares are trading lower by 3.19% at $317.87 premarket on the last check Friday.
