Why is Motorola Solutions stock declining?

Motorola Solutions stock has declined due to a general market underperformance and potentially unconvincing guidance updates, despite beating Q3 earnings expectations.

What were Motorola Solutions' Q3 results?

In Q3, Motorola Solutions reported a 7.8% year-over-year topline growth to $3 billion and adjusted EPS increased 8.6% to $4.06, exceeding analyst expectations.

What is the outlook for Motorola Solutions stock?

Analysts maintain a 'Moderate Buy' rating for Motorola Solutions with a mean price target suggesting a 35.8% upside potential.

Home / Business and Economy / Motorola Solutions Stock Plummets Despite Strong Earnings

Motorola Solutions Stock Plummets Despite Strong Earnings

1 Dec

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Summary

MSI stock has fallen 26.6% from its 52-week high.
Despite beating Q3 estimates, the company's stock declined.
Analysts maintain a 'Moderate Buy' rating with upside potential.

Motorola Solutions Stock Plummets Despite Strong Earnings

Chicago-based Motorola Solutions (MSI) is facing a challenging period with its stock declining 26.6% from its 52-week high of $503.62, marking a significant underperformance compared to the S&P 500. Despite beating third-quarter earnings and revenue expectations on October 30th, the company's shares fell 5.9% in the following trading session. The topline grew 7.8% year-over-year to $3 billion, with adjusted EPS increasing 8.6% to $4.06, surpassing consensus estimates.

Although Motorola Solutions raised its full-year guidance, this revision was primarily driven by an expected increase in contributions from the acquisition of Silvus. This upward revision, however, did not seem to sufficiently impress investors, contributing to the stock's bearish trend. MSI's stock has fallen below its 50-day and 200-day moving averages, indicating a significant downtrend. Furthermore, the company has lagged behind its peer Ubiquiti Inc., which has seen substantial gains.