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The company declared its regular quarterly dividend of $1.21 per share. This payment will go to shareholders of record on September 16 and be paid out on October 15. This is a routine move for the company. It reflects a steady return of cash to owners, supported by the predictable revenue it earns from long-term government contracts for radio and security systems.
Source: Business Wire
The company reported adjusted earnings of $4.41 per share on $3.13 billion in sales, both coming in well ahead of what analysts expected. Growth was led by the hardware side of the business, which rose 15 percent, while software and services grew 10 percent. Management also raised its full-year profit forecast to about $17.67 per share at the midpoint, signaling that government spending on emergency communications remains high.
For long-term owners, the most important number is the record $15.6 billion backlog, which is the total value of signed contracts for work not yet finished. This backlog grew 11 percent from last year and provides a clear view of future revenue. The company also announced a $1.5 billion deal to buy D-Fend Solutions, which specializes in technology to detect and take over unauthorized drones, adding a new layer to its security portfolio.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The radio and its remote speaker microphone achieved the NFPA 1930 certification, which is the latest industry standard for equipment used by firefighters. This standard requires extreme physical durability and specific software safety features, such as clearer diagnostic alerts and better volume control during high-stress situations.
While a single certification rarely moves the stock, it reinforces the company's competitive moat. Public safety agencies often require these specific certifications in their bidding processes. By being the first to meet the newest and toughest standard, the company makes it harder for smaller rivals to win contracts for high-end emergency equipment.
Source: Business Wire
Analysts issued a flurry of positive updates following the company's strong second-quarter earnings report. Most analysts, 24 out of 34, rate the stock as a buy, with an average price target that suggests 7% upside from today's price.
Management has beaten its own profit targets for eight straight quarters. They consistently set a bar they can clear, and the most recent beat was their largest in two years.
| Expectation | |
|---|---|
| EPS | $4.41 |
| Revenue | $3.26B |
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