Forecast Of The Day: Motorola Solutions Software and Services Revenue
What?
Motorola Solutions (NYSE:MSI) Software and Services business continues to gain traction, with revenues rising 15% to $758 million in Q1 2021. In comparison, Product sales grew just about 2% to $1.02 billion.
Why?
- Up 30% In The Last 12 Months, Will Motorola Solutions Stock Rally Further Following Q4 Results?
- What’s Happening With Motorola Solutions Stock?
- What’s Happening With Motorola Solutions Stock?
- Motorola Solutions Stock Has More Than Doubled Market Returns Since 2018- Here’s Why
- Motorola Solutions Stock Has Almost Doubled The S&P’s Returns Since 2018- Here’s Why
- Motorola Solutions Inc. Stock Looks Set To Continue Its Rally
The growth in the Software and Services business was driven by stronger sales of land mobile radio services, video security, and command center software.
So What?
The increasing mix of software and services revenue bodes well for Motorola Solutions on two counts. Firstly, the software segment has higher margins compared to products (37% vs. 13% adjusted operating margins in Q1). Secondly, the increasing focus on software and platforms should increase switching costs for Motorola’s products, potentially improving recurring revenues.
See Our Complete Analysis For Motorola Solutions
Looking for a balanced portfolio to invest in? Here’s a high-quality portfolio to beat the market, with over 150% return since 2016, versus 85% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams