Motorola Solutions, Inc. MSI recently announced that it has inked a long-term agreement with the Department of Justice and Community Safety of the Victorian Government to advance the capabilities of state emergency services with Motorola’s advanced Mobile Radio Network. Motorola already has a strong presence in the region. Since 2005, Victoria’s public safety agencies have been utilizing the Metropolitan Mobile Radio Network (MMR), and it has played an essential role during several crisis situations in the region, such as the 2023 flood crisis and the 2009 Black Saturday bushfires. 

The recently signed contract with the Victoria Government is valued at approximately $330 million. Under the deal, Motorola will strengthen the radio communication network and support the state’s first responders for the next 10 years.

Frontline workers and first responders often have to operate in hostile situations. In such time, effective communication becomes a vital component of conducting an efficient operation. Lack of communication severely undermine situational awareness, leading to delayed response and higher risks of accident. Motorola’s robust radio communication solutions promptly address these issues.

Per the new contract, Motorola will boost the coverage and reliability of the existing MMR network. The network will be accessible to multiple state safety agencies, including Victoria State Emergency Service, Fire Rescue Victoria, Ambulance Victoria, Victoria Police and more. Comprehensive availability of the radio service throughout the state will allow multiple agencies to cooperate with each other during critical incidents. Motorola’s operation center and field engineers will offer 24/7 support and services to ensure optimum functionality of the network. 

Moreover, Motorola will provide 1600 APX NEXT all-band smart radios in Ambulance Victoria’s regional units. Motorola’s cloud-based service, SmartConnect, will facilitate automatic switching between land mobile radio, WiFi, Satellite and broadband networks. This will significantly bolster agencies’ coverage beyond Motorola’s radio coverage areas. Integration of such advanced features will significantly bolster emergency response services across Victoria state.

Will This Contract Extension Drive MSI’s Share Performance?

As a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue stream from this niche market. The communications equipment maker intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem. Around 13,000 Motorola land mobile radio networks are deployed across 100 countries. Several governments, including Norway, Portugal, Denmark and Austria, have recently renewed their contracts with Motorola for radio communication networks. This growing investment in mission-critical communication networks worldwide augurs well for the company’s long-term growth.

MSI’s Stock Price Movement

The stock has gained 41.5% over the past year against the industry’s growth of 28%.

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MSI’s Zacks Rank & Stocks to Consider

Motorola currently carries a Zacks Rank #3 (Hold).

Keysight Technologies, Inc. KEYS has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.

InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 158.41%, trailing four quarters.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Zillow Group, Inc. ZG carries a Zacks Rank #2 at present. ZG delivered an earnings surprise of 7.07%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in multi and single-family listings, which is a positive factor.

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