Motorola Solutions Inc (NYSE:MSI) posted second quarter earnings per share of $1.12, which beats the analyst estimates of $1.04. Revenue from the company at $2.11 billion was slightly below the consensus estimates of $2.13 billion and down 2 percent from the second quarter of 2012.
2Q performance
For the quarter, GAAP operating earnings came in at $266 million or 12.6 percent of sales versus $350 million or 16.3 percent of sales in the second quarter of 2012. Non-GAAP operating earnings were $334 million or 15.9 percent of sales against 350 million or 16.3 percent of sales in the second quarter of 2012.
Greg Brown, chairman and CEO of Motorola Solutions Inc (NYSE:MSI), said: “Our Government business performed well in the second quarter though our Enterprise business continues to be challenged primarily due to market conditions.”
Motorola solutions segment wise performance
Enterprise segment sales, for the second quarter, came in at $656 million, which was 5 percent below the year-ago quarter. Excluding Psion, sales were down 12 percent. GAAP operating earnings for the segment were $51 million or 7.8 percent of sales versus $81 million or 11.8 percent of sales in the year-ago quarter.
Government segment sales for the second quarter came in at $1.5 billion, which was 1 percent below the year-ago quarter. GAAP operating earnings for the segment were $215 million or 14.8 percent of sales versus $197 million or 13.5 percent of sales in the year-ago quarter.
Motorola Solutions Inc (NYSE:MSI) in the earnings call also announced that its board of directors has raised the regular quarterly cash dividend by 19 percent to $0.31 per share, payable on October 15, 2013, to stockholders of record at the close of business on September 13, 2013.
Board of the company also authorized an additional $2.0 billion of share repurchases. Excluding this addition company is currently authorized to buyback up to $5.0 billion stock, and of which it has already utilized $4.5 billion, in the last 24 months.
3Q and full year guidance
For the third quarter, Motorola Solutions Inc (NYSE:MSI) expects EPS in the range of $0.97-$1.02, which is below the consensus estimate of $1.25. Revenues for the third quarter are expected to be flat to down 3 percent from the third quarter of 2012.
For the full year, revenues are expected to be flat to up 1 percent compared with 2012. Non-GAAP operating margins are estimates to be around 18 percent of sales.
