Motorola Solutions, Inc. (MSI Quick QuoteMSI - Free Report) is scheduled to report second-quarter 2025 results on Aug. 7, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 5.6%. It pulled off a trailing four-quarter earnings surprise of 7.2%, on average.

The Chicago, IL-based company is expected to have recorded year-over-year higher revenues on the back of growth in both segments — Products and Systems Integration and Services and Software. It benefits from the increasing demand for its mission-critical technologies in North America and globally.

Factors at Play

During the to-be-reported quarter, Motorola announced that Collin College Law Enforcement Academy will deploy Motorola’s V700 body cameras into its training program. The V700 body-worn cameras stream live video feeds and report real-time Global Positioning System (GPS) locations over a Long Term Evolution (LTE) network to the CommandCentral Aware platform. The solution seamlessly integrates with the in-car camera, capturing synchronized video of an incident from multiple vantage points. This is likely to have generated incremental revenues during the quarter.

In the quarter, Motorola launched APX N70 XE smart radio, which is designed to facilitate mission-critical communication for firefighters and emergency medical services. The company also launched SVX, a first-of-its-kind video remote speaker microphone that converges secure voice, video and AI for its flagship radio, APX NEXT and Assist – an interactive public safety AI to accelerate the informed decision-making process. Security enterprises, police forces and firefighter agencies are placing strong emphasis on strengthening their overall security ecosystems. This is driving demand for advanced communication devices from Motorola, likely translating into higher revenues for the quarter. 

During the quarter, Motorola announced that it will implement a new federal mission-critical communications solution to enable Brazil’s defense and public safety organizations to seamlessly collaborate during joint missions. Motorola will integrate multiple existing land mobile radio systems and add new mission-critical Push-to-X broadband services to enhance interagency interoperability and access to data applications to better protect Brazil’s communities. These are likely to be reflected in the upcoming quarterly results.

During the second quarter, Motorola acquired Silvus Technologies, Inc., a leading developer of software-defined high-speed mobile ad-hoc network (MANET) technology that efficiently supports highly secure data, video and voice communications without any requirement for fixed infrastructure. Silvus’ mesh technology establishes a large, scalable and self-healing network adaptable to constant mobility. This can seamlessly support high bandwidth-intensive applications such as video, sensors and drones. Integration of such leading-edge capabilities will diversify Motorola’s product offering, expand global reach and boost commercial prospects in defense and military applications.

Riding on such state-of-the-art products, Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations. These developments are expected to have positively impacted its performance in the second quarter.

The Zacks Consensus Estimate for the Products and Systems Integration segment’s revenues is pegged at $1,690 million. The figure indicates a rise from $1,658 million recorded in the year-ago quarter. Our estimate for revenues from this segment is $1,696.3, implying 2.3% year-over-year growth. The Zacks Consensus Estimate for the Services and Software segment’s revenues is pegged at $1,048 million, up from $970 million recorded in the year-earlier quarter. Our estimate for revenues from this segment is $1,038, suggesting 7% year-over-year growth.  

For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $2,738 million, which indicates growth from the year-ago quarter’s reported figure of $2,628 million. The consensus estimate for adjusted earnings per share is $3.36, which suggests an increase from $3.24, driven by top-line growth.

Earnings Whispers

Our proven model predicts an earnings beat for Motorola in the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Motorola carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:

CommScope Holding Company, Inc. (COMM Quick QuoteCOMM - Free Report) is set to release quarterly numbers on Aug. 7. It has an Earnings ESP of +19.18% and sports a Zacks Rank #1. 

The Earnings ESP for Plug Power Inc. (PLUG Quick QuotePLUG - Free Report) is +2.44% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Aug. 14.

The Earnings ESP for Genpact Limited (G Quick QuoteG - Free Report) is +0.78% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug. 7.