Motorola Solutions (MSI) reported a 16.5% jump in earnings for the third quarter as growth in the Americas and EMEA, and an increase in acquisitions drove revenues higher. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates.
Net income attributable to the company climbed 16.5% to $247 million and earnings increased 14% to $1.43 per share. Non-GAAP earnings jumped 27% to $1.94 per share.
Sales grew 13% year-over-year to $1.86 billion. This was driven by growth in the Americas and EMEA. About $145 million of revenue growth was related to acquisitions, and $19 million was related to the adoption of accounting standard ASC 606.
The Products and Systems Integration segment grew 10% driven by the Americas and EMEA. The Services and Software segment grew 22% with growth in all regions.
Looking ahead into the fourth quarter, Motorola Solutions expects revenue growth of about 13.5% compared with last year. Non-GAAP earnings are anticipated to be in the range of $2.50 to $2.55 per share. This assumes current foreign exchange rates, about 173 million fully diluted shares, and a 25% effective tax rate.
For the full year 2018, the company continues to expect revenue growth of about 14.5%. Non-GAAP EPS guidance was lifted to the range of $7.00 to $7.05 from the prior forecast range of $6.79 to $6.89. This assumes current foreign exchange rates, about 172 million fully diluted shares, and a 22.5% effective tax rate.
The company ended the third quarter with the backlog of $9.5 billion, up $572 million from the year-ago quarter. Products and Systems Integration segment backlog was up 9%, and Services and Software were up 5%. Land mobile radio demand led by the Americas continues to drive backlog growth.
Shares of Motorola Solutions ended Thursday’s regular session up 1% at $123.78 on the NYSE. The stock has risen over 36% in the past year and over 37% in the year so far.