Demand for critical security solutions spurs Motorola’s revenue growth in 2024
Motorola Solutions raised its full-year revenue and profit guidance based on the strength of the strong demand for telecommunications products from security prospects. The critical communications and security solutions company has heightened its guidance due to the increasing dependence of government agencies and businesses on Motorola's solutions to add strength to its infrastructure defences against cyber attacks and disruption of operations.
Shares in the company, based in Chicago, rose by over 2.5% in after-hours trading on the news. Motorola's portfolio houses all critical communication equipment: from walkie-talkies to video-surveillance cameras and software solutions, which are, at any given moment, considered as much of a necessity to communities. Motorola helps communities in the moment of urgency by providing governments and organizations with fail-safe, security-oriented communication options.
"Motorola upped its full-year revenue and profit forecasts on Thursday, as clients turn to the firm for its security-focused telecommunication products," the company reported. Government and corporate efforts to secure and protect against service-disrupting events have brought stable demand for Motorola's products. Such demand has benefited Motorola the most in its communications equipment, which finds critical support during most situations.
Motorola's biggest customers are the US federal government and the Home Office from the UK In both cases, these organizations have long enjoyed the company's solutions in protecting their activities and enhancing security in significant areas of operation. With the escalating global threats, Motorola has become a particularly valued partner in public safety and enterprise security for institutions focused on ensuring operational stability.
The company has raised its expectation of revenue growth for fiscal 2024 to 8.25% from its earlier estimate of about 8%. It also adjusted its estimate of adjusted EPS in the range of $13.63 to $13.68 from $13.22 to $13.30 per share as earlier estimated.
Motorola disclosed revenue of $2.79 billion for the third quarter ended Sept. 28, compared with an expected $2.76 billion. Adjusted profit came at $3.74 per share, well above the expected $3.38 per share, according to data sourced from LSEG.
The improved forecast by Motorola presents the necessity of raising the level of security and emergency communication. Because demand for secure infrastructure is still on the rise, there is stable demand from clients who want a level of resilience against cyber and physical threats that are increasingly common.