Shareholders might have noticed that Motorola Solutions, Inc. (NYSE:MSI) filed its annual result this time last week. The early response was not positive, with shares down 8.6% to US$438 in the past week. Motorola Solutions reported US$11b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$9.23 beat expectations, being 2.8% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Motorola Solutions

Following the latest results, Motorola Solutions' twelve analysts are now forecasting revenues of US$11.4b in 2025. This would be a satisfactory 5.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 37% to US$12.93. Before this earnings report, the analysts had been forecasting revenues of US$11.5b and earnings per share (EPS) of US$12.33 in 2025. So the consensus seems to have become somewhat more optimistic on Motorola Solutions' earnings potential following these results.

There's been no major changes to the consensus price target of US$519, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Motorola Solutions analyst has a price target of US$600 per share, while the most pessimistic values it at US$460. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Motorola Solutions is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Motorola Solutions' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.8% growth on an annualised basis. This is compared to a historical growth rate of 7.9% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Motorola Solutions is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Motorola Solutions' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Motorola Solutions' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Motorola Solutions going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Motorola Solutions , and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.