Hot Tech stock to watch: Motorola Solutions Inc (NYSE: MSI)

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Motorola Solutions Inc (NYSE: MSI) stock rose over 2.27% in the pre-market session on Feb 7th, 2020 (Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 19. The company has ended the fourth quarter with record backlog of $11.3 billion, which is up $659 million from the year-ago quarter. Software and Services segment backlog rose up 9% or $699 million, mainly due to growth in the Americas and the extension of the ESN contract. Products and System Integrations segment backlog have declined by 1% or $40 million due to declines in EMEA and AsiaPac, which is partially offset by growth in the Americas. Further, MSI has generated operating cash of $795 million compared to $812 million in the year-ago quarter. The company has generated the free cash flow of $736 million, compared with $743 million in the year-ago quarter. The year over year decline in cash flow was mainly on the back of changes in working capital in the current quarter, which was partially offset by higher operating earnings in the current quarter.

MSI in the fourth quarter of FY 19 has reported the adjusted earnings per share of $2.94, beating the analysts’ estimates for the adjusted earnings per share of $2.79, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5 percent to $2.38 billion in the fourth quarter of FY 19, beating the analysts’ estimates for revenue by 0.20%. The Products and Systems Integration segment was flat due to growth in the Americas and AsiaPac offset by declines in EMEA related to large LMR deployments in the Middle East and Africa in the prior year. The Software and Services segment rose 21% with growth in all regions.

Additionally, in 2019, the company had invested $709 million in acquisitions, has paid $379 million in dividends, and repurchased $315 million of its common stock at an average price of $137.35 per share.

For the first-quarter 2020, the Company expects revenue growth to be of approximately 2% compared to the first quarter of 2019. The company projects the non-GAAP earnings per share to be in the range of $1.30 to $1.35 per share, assuming the current foreign exchange rates, to be approximately 176 million fully diluted shares, and a 20% effective tax rate.

For full-year 2020, the company expects the revenue growth to be of approximately 4% and non-GAAP earnings per shares are expected to be in the range of $8.65 to $8.80 per share.

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