Motorola Solutions (MSI 84.29, -1.81) is lower by 2.1% after beating first quarter expectations and issuing mixed guidance. With today's decline, shares of Motorola Solutions have narrowed their 2017 gain to 1.9%.
The technology company reported above-consensus first quarter earnings of $0.71 per share on a 7.4% year-over-year increase in revenue to $1.28 billion, which was also ahead of expectations.
Product sales were little changed, ticking up 0.1% year-over-year to $703 million while Services revenue increased 17.7% to $578 million. Gross margin improved to 44.50% from 42.08% one year ago while operating margin increased to 17.5% from 13.9% one year ago.
Backlog increased by $129 million to $8.50 billion. Products backlog increased by $285 million while Services backlog declined by $156 million.
Looking ahead, the company expects second quarter earnings between $0.98 per share and $1.03 per share, which is short of market estimates. Revenue is expected between $1.46 billion and $1.47 billion, which is ahead of market expectations.
The company narrowed its full year earnings guidance range and now expects in-line earnings between $5.08 per share and $5.23 per share (from $5.05 - $5.20) on revenue growth of about 2.0% to $6.16 billion (up from previous guidance for growth of 1.0%).