Analysts Are Updating Their Motorola Solutions, Inc. (NYSE:MSI) Estimates After Its Yearly Results

The yearly results for Motorola Solutions, Inc. (NYSE:MSI) were released last week, making it a good time to revisit its performance. Motorola Solutions reported US$10.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$9.93 beat expectations, being 3.1% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Motorola Solutions

Taking into account the latest results, the consensus forecast from Motorola Solutions' twelve analysts is for revenues of US$10.6b in 2024. This reflects a reasonable 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.1% to US$11.12. Before this earnings report, the analysts had been forecasting revenues of US$10.6b and earnings per share (EPS) of US$11.08 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$347. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Motorola Solutions at US$375 per share, while the most bearish prices it at US$237. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Motorola Solutions'historical trends, as the 6.2% annualised revenue growth to the end of 2024 is roughly in line with the 5.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.6% per year. So it's pretty clear that Motorola Solutions is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Motorola Solutions. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Motorola Solutions analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Motorola Solutions that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.