On February 13, Safety and enterprise security services provider Motorola Solutions predicted a first-quarter adjusted profit exceeding Wall Street expectations due to increased demand for its safety and security services.
Government agencies and businesses are bolstering their security and communication infrastructure to combat cyberattacks, driving growth for Motorola.
CEO Greg Brown stated, "Strong demand for our safety and security solutions, combined with our record backlog, positions us well for another year of robust growth."
J.P. Morgan analysts anticipate broader demand in the public safety market this year, citing a heightened focus on crime reduction in major cities and improved border security, leading to increased investments from key customers like the police and border patrol.
Motorola's backlog remains at record levels, with a strong upgrade cycle for land mobile radio devices and high demand for video analytics solutions across various industries.
Based in Chicago, Illinois, Motorola saw its shares rise by 2% in extended trading.
The company offers critical communications equipment such as walkie-talkies, video-surveillance cameras, and software solutions to support communities during emergencies.
In January, Motorola announced plans to acquire Theatro Labs, a company specializing in AI and voice-powered communication software for frontline workers.
For the first quarter, Motorola predicts an adjusted profit per share between $2.98 and $3.03, surpassing analysts' average estimate of $2.93 per share, with revenue growth expected to reach 5-5.5%.
Looking ahead to fiscal 2025, Motorola projects an adjusted profit between $14.64 and $14.74 per share, exceeding estimates of $14.67 per share, and anticipates an annual revenue growth of approximately 5.5%.
In the fourth quarter that ended on December 31, Motorola reported revenue of $3.01 billion, slightly higher than the estimated $2.99 billion.