Motorola Solutions falls on weak full-year profit forecast
Reuters
Published Feb 08, 2024 05:19PM ET
(Reuters) - Motorola Solutions (NYSE:MSI) forecast full-year adjusted profit below expectations on Thursday, taking the sheen off strong results and additional stock buyback, sending its shares down 5% in choppy trading after the bell.
The telecommunication equipment company said it expects 2024 adjusted profit of $12.62 to $12.72 per share. The mid-point of the range was 1 cent below expectations of $12.68 per share.
Its forecast of about 6% revenue growth this year was slightly higher than the 5.7% analysts' expectations, according to LSEG data.
The Chicago, Illinois-based company provides critical communications gear such as walkie-talkies, video surveillance cameras and software services to help communities served by governments and businesses during emergencies.
Motorola's revenue rose 5% to $2.85 billion in the fourth-quarter, driven by growth in North America and International markets. The figure came in higher than estimates of $2.82 billion.
Adjusted per share profit of $3.90 handily beat expectations of $3.63.
The company said it had expanded its share buyback authorization by $2 biliion. Last year, it repurchased $804 million worth of company stock and paid $589 million in dividends.
The U.S. government and home office of the United Kingdom are the largest customers of Motorola Solutions.
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Written By: Reuters
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