Motorola Solutions Inc. Jumps on Q4 Earnings and Avigilon Corp. Acquisition
Motorola Solutions Inc. (NYSE:MSI) was up 5.96% at the top of the noon hour on February 2. Shares have already jumped 17.2% in 2018. The company released its 2017 fourth quarter and full-year results on February 1.
Revenue increased 4% year over year to $2 billion and the company posted organic revenue growth of 2%. Growth has been powered by increase in land-to-mobile (LMR) solutions. Operating earnings were up 27% to $511 million compared to $403 million in Q4 2016. For the full-year operating earnings rose 20% to $1.28 billion. The services segment saw sales jump 10% to $724 million in the fourth quarter and climb 9% to $2.6 billion for the full year.
Motorola announced that it would absorb an $874 million charge due to tax reform in the fourth quarter. In its 2018 business outlook, Motorola projects revenue growth of 7% in the first quarter and earnings per share in the range of $6.50 to $6.65.
On February 1 Motorola announced that it would purchase Avigilon Corp., the Vancouver-based video surveillance software and equipment company, for $1.2 billion. Motorola expects the new acquisition to expand its offering to commercial customers with increased demand for surveillance software from public and private entities.
Motorola stock has increased 29% year over year. The company last offered a dividend of $0.52 per share representing a 1.9% dividend yield.