Motorola Solutions forecasts fourth-quarter revenue above estimates on steady demand
Motorloa SL1600 two way radio walkie-talkies. REUTERS/Kevin Coombs
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Motorola Solutions beat third-quarter profit estimate and forecast current-quarter revenue growth above expectations on Thursday, driven by steady demand for its security products and critical communications equipment from government agencies.
The company has benefited from consistent spending by public safety and government agencies in North America, which are upgrading their radio systems and investing in video security and command center software.
Demand has also been bolstered by funding from government programs, including the American Rescue Plan Act, which has provided state and local governments with capital for modernizing their critical communication infrastructure.
Motorola Solutions forecast fourth-quarter revenue to grow 11 per cent, compared with analysts' average estimate of a 10.8 per cent increase, according to data compiled by LSEG.
Its adjusted profit per share for the September quarter came in at $4.06, beating the estimate of $3.85.
Third-quarter revenue was $3.01 billion, while analysts expected $2.99 billion.
Shares of Motorola Solutions, however, were down about 1 per cent in extended trading.
