Motorola Earnings: Overpriced Shares Overshadow Strong Fundamentals After Impressive Results

We've raised our fair value estimate for Motorola Solutions to $223 per share from $216 after an impressive first quarter that came in ahead of our estimates. The company also raised its full-year guidance. Motorola continues to navigate a rocky macroeconomic spending environment with ease, showcasing the mission-critical and sticky nature of its products that underpins its economic moat. Sales and earnings beat the top ends of management guidance, and gross margin was particularly impressive. Motorola is positioned to perform well even against tough backdrops that hamper peers, and we wouldn’t be surprised if the newly raised full-year guidance turns out to be modestly conservative.