Motorola Solutions has increased its revenue and profit forecasts for the full year due to strong demand for its integrated security solutions.
The company's shares rose over 3% in after-hours trading.
With the aim of improving response times in emergencies and addressing security vulnerabilities, governments and private organizations are relying on public safety solutions provided by companies like Motorola.
The Chicago-based company now expects full-year revenue to be between $9.88 billion and $9.90 billion, up from the previous estimate of $9.73 billion to $9.78 billion. Analysts were expecting revenue of around $9.79 billion. The company also raised its projected adjusted profit for the year to between $11.40 and $11.48 per share, compared to the previous forecast of $11.21 to $11.29. Analysts had predicted a profit of $11.29.
Motorola's CEO, Greg Brown, stated that the company has strong momentum going into the second half of the year. For the third quarter, the company expects adjusted profit to be in the range of $2.99 to $3.04 per share, slightly below estimates of $3 per share. In the second quarter, Motorola's adjusted net income reached $458 million, compared to $354 million in the previous year.
The company provides critical communications equipment such as walkie-talkies, video surveillance cameras, and software solutions that assist governments and businesses in emergency situations. Motorola's largest customers are the U.S. government and the United Kingdom's home office.
In the second quarter, the company's revenue increased by 12% to $2.4 billion, slightly surpassing market estimates of $2.36 billion. Its adjusted earnings per share were $2.65, higher than the market estimate of $2.51.