Motorola Solutions (MSI) Stock Climbs Ahead of Wednesday's Earnings Release

Motorola Solutions (MSI) stock is advancing in midday trading on Tuesday, before the release of the company's 2015 third quarter earnings results before the market open tomorrow.
By Rachel Graf ,

NEW YORK (TheStreet) --  Motorola Solutions (MSI) - Get Report stock is rising by 0.54% to $71.11 in midday trading on Tuesday, ahead of the company's 2015 third quarter earnings release, due out before the market open on Wednesday. 

Analysts expect the provider of communication infrastructure, devices, software, and services to post a year over year rise in earnings and a decline in revenue.

Motorola has been forecast to report earnings of 73 cents per share on revenue of $1.41 billion for the most recent quarter.

Last year, the company posted earnings of 62 cents per share on revenue of $1.44 billion for the 2014 third quarter. 

Separately, TheStreet Ratings team rates MOTOROLA SOLUTIONS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate MOTOROLA SOLUTIONS INC (MSI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • MOTOROLA SOLUTIONS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MOTOROLA SOLUTIONS INC swung to a loss, reporting -$3.12 versus $3.47 in the prior year. This year, the market expects an improvement in earnings ($3.34 versus -$3.12).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.4%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 82.6% when compared to the same quarter one year ago, falling from $824.00 million to $143.00 million.
  • Net operating cash flow has decreased to $140.00 million or 19.07% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, MOTOROLA SOLUTIONS INC has marginally lower results.
  • You can view the full analysis from the report here: MSI
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