Motorola (News - Alert) Solutions Inc. has been making some estimates, and it predicts that growth in its government business will be moderate in 2013. Business is still expected to grow, but very slowly, with percentages just in the single digits.
Do keep in mind that Motorola Solutions is separate from Motorola Mobility. The former is a communications gear maker that dominates the two-way radio market, thanks to its land-mobile-radio systems and public safety products. The latter is a cellphone maker owned by Google (News - Alert). If you’ve come to this article looking for cell phone information, I’m afraid this isn’t the right place, but if you want to know about Motorola Solutions Inc., then read on.
In 2012, Motorola’s government business grew by 12 percent, which ended up accounting for well over half its total revenue. This growth is mostly attributed to the sales of two-way radios to upgrade the Federal Communications Commission’s devices. However, now that that’s at an end, the income from those devices will drop.
Still, its sales won’t come to a complete end, as there is always some demand. Growth is expected to remain growing at a very small pace, around the mid to low single digit percentages. Its first quarter revenue is anticipated to increase around four or five percent from previous years, with earnings forecast between 62 to 67 cents per share.
Analysts are slightly more optimistic than Motorola Solutions, with estimated revenue at $2.07 billion and earnings at 67 cents per share. All things considered, though, it’s still in the ballpark, but Motorola’s expectations are still lower.
This isn’t the best news for Motorola Solutions Inc., but it could be worse. Its growth is slow, but still there, and it’s coming off a nice quarter that will be hard to match thanks to the government upgrade program. It might be slowing down a little, but it’s still got a nice customer base, and has proven its worth once again with the successful and smooth upgrades it just provided.
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Edited by Jamie Epstein