Motorola Solutions' (MSI) Q4 results exceeded market expectations, driven by strong demand across all business segments and tax benefits, Morgan Stanley said in a note Friday.
However, the firm cautioned that foreign exchange headwinds could limit revenue growth in 2025.
The company reported Q4 non-GAAP earnings of $4.04 per share, surpassing analyst expectations of $3.89. Revenue rose to $3.01 billion, slightly above the $2.99 billion consensus estimate.
Morgan Stanley highlighted that all three business segments contributed to the revenue result, while EPS upside was supported by operating leverage and tax benefits.
The firm also highlighted record backlog levels of $14.7 billion, primarily in software and services for the company, as a key indicator of strong demand. Despite this, forex headwinds of about 100 basis points into 2025 are expected to keep revenue estimates largely unchanged.
The firm now projects Q1 non-GAAP revenue of $2.52 billion and EPS of $3.00, compared to prior estimates of $2.54 billion and $2.78.
For the full year 2025, Morgan Stanley now forecasts $11.41 billion in revenue and $14.69 in EPS, aligning closely with the company's own EPS guidance range of $14.64 to $14.74.
The investment firm kept its equal-weight rating on Motorola Solutions and raised its price target to $505 from $495.
Price: 444.38, Change: -21.67, Percent Change: -4.65
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