MS

Motorola Solutions, Inc. stock research

Mar 30, 2024

FY2024 Q1

Motorola Solutions (MSI) Gross Margin — Quarter Ended Mar 30, 2024

In the current quarter, revenue decreased compared to the prior quarter but increased relative to the same quarter last year. Gross profit followed a similar pattern, and gross margin weakened sequentially while improving year over year.

Gross margin takeaway

Quarter ended Mar 30, 2024 · FY2024 Q1

In the current quarter, revenue decreased compared to the prior quarter but increased relative to the same quarter last year. Gross profit followed a similar pattern, and gross margin weakened sequentially while improving year over year.

  • The year-over-year gross margin improvement was accompanied by revenue growth that exceeded cost of revenue growth. This relationship is the most observable driver of the margin change.
  • Compared to the immediately preceding quarter, both revenue and gross profit were lower, and gross margin decreased. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

49.9%

Gross profit

$1.2B

Revenue

$2.4B

Cost of revenue

$1.2B

Quarter-over-quarter change

-1.2 pts

Year-over-year change

+1.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jul 1, 2023$2.4B$1.2B$1.2B49.5%
Sep 30, 2023$2.6B$1.3B$1.3B50.1%
Dec 31, 2023$2.8B$1.5B$1.4B51.1%
Mar 30, 2024$2.4B$1.2B$1.2B49.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

-1.2 pts

Year-over-year change

Apr 1, 2023

+1.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The year-over-year gross margin improvement was accompanied by revenue growth that exceeded cost of revenue growth. This relationship is the most observable driver of the margin change.

Compared to the immediately preceding quarter, both revenue and gross profit were lower, and gross margin decreased. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.

The sequential decline in gross margin from the prior quarter is a metric to monitor in upcoming periods.

MSI Gross Margin — Quarter Ended Mar 30, 2024