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

Last week, you might have seen that Motorola Solutions, Inc. (NYSE:MSI) released its full-year result to the market. The early response was not positive, with shares down 7.7% to US$438 in the past week. Motorola Solutions reported US$11b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$9.23 beat expectations, being 2.8% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Motorola Solutions after the latest results.

See our latest analysis for Motorola Solutions

Taking into account the latest results, the most recent consensus for Motorola Solutions from twelve analysts is for revenues of US$11.4b in 2025. If met, it would imply a satisfactory 5.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 36% to US$12.87. Before this earnings report, the analysts had been forecasting revenues of US$11.5b and earnings per share (EPS) of US$12.33 in 2025. So the consensus seems to have become somewhat more optimistic on Motorola Solutions' earnings potential following these results.

There's been no major changes to the consensus price target of US$518, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Motorola Solutions at US$600 per share, while the most bearish prices it at US$460. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's pretty clear that there is an expectation that Motorola Solutions' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 7.9% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Motorola Solutions is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Motorola Solutions following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Motorola Solutions' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$518, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Motorola Solutions going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Motorola Solutions you should know about.

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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.