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The company's shares, which have risen 8 percent since its fourth-quarter results in January, jumped another 6 percent to $51.45 on Wednesday on the Nasdaq.
The company's strong performance and the recent run-up in its share price indicate it is emerging from the shadows of its headline-grabbing sister Motorola Mobility Holdings Inc MMI.N.
Motorola Inc, faced with steep declines in sales of its mobile phones, spun off its consumer-oriented, phone and set-top box business into Motorola Mobility Holdings Inc in January 2011.
Motorola Inc, which was renamed Motorola Solutions, retained the government and enterprise businesses. Its stock price has risen by about 22 percent since the split.
The company, valued at about $15 billion, said it bought back $1.4 billion worth of stock and paid $70 million in dividends during the first quarter.
It had bought back $366 million in shares in the fourth quarter and $744 million of shares in the third.
"The company can buy back 35 percent of itself over the next three or four quarters," said Morningstar analyst Dale Wettlaufer, but added that it probably would not happen that quickly.
"They have demonstrated they will not fritter away the cash."
Motorola Solutions, which dominates the market with its land-mobile-radio systems and public-safety products, is geared to gain from the roll out of devices that use the new 4G LTE network, Wettlaufer said.
"For example, the police may have cameras on their helmets that have facial recognition software that will be able to tell them if someone they are looking at has outstanding warrants or if they have weapons felonies," said Wettlaufer.
"Or it can take a picture of their tattoo and tell them what gang they are in. It's a great business opportunity."
SOFT EUROPE
The company, however, remained cautious about enterprise spending in Europe and forecast second-quarter results in line with estimates. It gets about a third of its total revenue from enterprise customers.
The business was, however, returning to more normal levels, company officials said on a conference call with analysts.
Wettlaufer said while Europe was soft, a large contract Motorola signed with Norway in the first quarter and constant product innovation would hold up demand in the region.
The company expects second-quarter revenue to grow about 6 percent, implying sales of about $2.10 billion.
It expects an adjusted profit of 65 cents to 70 cents per share from continuing operations in the quarter, in line with analysts' expectations of 68 cents per share, according to Thomson Reuters I/B/E/S.
The company, which competes with Cisco Systems Inc (CSCO.O) and European Aeronautic Defence and Space Co EADS.PA, said government segment sales rose 11 percent in the quarter to $1.3 billion.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Roshni Menon, Sreejiraj Eluvangal)
The company's strong performance and the recent run-up in its share price indicate it is emerging from the shadows of its headline-grabbing sister Motorola Mobility Holdings Inc MMI.N.
Motorola Inc, faced with steep declines in sales of its mobile phones, spun off its consumer-oriented, phone and set-top box business into Motorola Mobility Holdings Inc in January 2011.
Motorola Inc, which was renamed Motorola Solutions, retained the government and enterprise businesses. Its stock price has risen by about 22 percent since the split.
The company, valued at about $15 billion, said it bought back $1.4 billion worth of stock and paid $70 million in dividends during the first quarter.
It had bought back $366 million in shares in the fourth quarter and $744 million of shares in the third.
"The company can buy back 35 percent of itself over the next three or four quarters," said Morningstar analyst Dale Wettlaufer, but added that it probably would not happen that quickly.
"They have demonstrated they will not fritter away the cash."
Motorola Solutions, which dominates the market with its land-mobile-radio systems and public-safety products, is geared to gain from the roll out of devices that use the new 4G LTE network, Wettlaufer said.
"For example, the police may have cameras on their helmets that have facial recognition software that will be able to tell them if someone they are looking at has outstanding warrants or if they have weapons felonies," said Wettlaufer.
"Or it can take a picture of their tattoo and tell them what gang they are in. It's a great business opportunity."
SOFT EUROPE
The company, however, remained cautious about enterprise spending in Europe and forecast second-quarter results in line with estimates. It gets about a third of its total revenue from enterprise customers.
The business was, however, returning to more normal levels, company officials said on a conference call with analysts.
Wettlaufer said while Europe was soft, a large contract Motorola signed with Norway in the first quarter and constant product innovation would hold up demand in the region.
The company expects second-quarter revenue to grow about 6 percent, implying sales of about $2.10 billion.
It expects an adjusted profit of 65 cents to 70 cents per share from continuing operations in the quarter, in line with analysts' expectations of 68 cents per share, according to Thomson Reuters I/B/E/S.
The company, which competes with Cisco Systems Inc (CSCO.O) and European Aeronautic Defence and Space Co EADS.PA, said government segment sales rose 11 percent in the quarter to $1.3 billion.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Roshni Menon, Sreejiraj Eluvangal)
