Motorola Solutions, the Schaumburg-based maker of walkie-talkies and radio systems, reported fourth-quarter sales Wednesday were flat compared with a year ago but beat analyst expectations on earnings per share.
“We continue to see signs of recovery,” Chairman and CEO Greg Brown said.
Here’s how the quarter and year played out, and a bit of what’s to come:
Net income: Motorola Solutions’ fourth-quarter income was $201 million, compared with $343 million a year earlier. Net earnings for the full year grew to $1.3 billion, up from $1.1 billion in 2013, an 18.2 percent gain.
Earnings per share: Fourth-quarter EPS, adjusted for one-time gains and costs, was $1.25, down 9 percent from $1.37 a year earlier. Full-year EPS was down 33 percent to $2.58 compared with 2013.
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EPS beat Zacks Equity Research’s projection of $1.03.
Revenue: Net sales for fourth-quarter 2014 were $1.82 million, up slightly from $1.8 million a year earlier. Full-year sales were $5.9 million, down 6.3 percent from $6.2 million in 2013. Product sales were up about 3 percent, driven by device growth in North America, while services sales were down 5 percent overall.
The “why”: Motorola Solutions officials cited “unfavorable foreign currency impact” and a reliance on government contracts as reasons fourth-quarter sales were flat compared with the previous year, while layoffs beginning in June 2014 cut operating expenses.
Quote you on that: Brown called 2014 a “challenging but transformational year for our business.”
Notable news from the year: Motorola made an unspecified number of layoffs and closed the sale of its enterprise business to Zebra Technologies for $3.45 billion in October, decreasing its employee count by up to 400.
2015 first-quarter outlook: Motorola Solutions expects revenue to decline by 2 to 4 percent and earnings per share of 22 cents to 27 cents.
What’s next: 2015 sales are expected to be flat to down 2 percent compared with 2014, with earnings per share in the $3.15 to $3.35 range. The company said it plans to continue its focus on mobile broadband solutions for public-safety agencies.
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