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Zebra Technologies Q3 revenue beats on strong demand across segments

By Reuters News


Overview

  • Automation solutions provider's Q3 revenue rose 22%, beating analyst expectations

  • Adjusted EPS for Q3 increased to $4.95, beating analyst expectations

  • Company repurchased $75 mln in shares during the quarter


Outlook

  • Company expects Q4 sales growth between 10% and 14% versus prior year

  • Company sees Q4 adjusted EBITDA margin at approximately 22%

  • Company expects Q4 non-GAAP diluted EPS of $5.00 to $5.40

  • Company expects full-year free cash flow of at least $1 bln


Result Drivers

  • BROAD-BASED DEMAND - Co said strong demand across segments and regions contributed to double-digit sales growth, with Elo Touch cited as a key contributor

  • MEMORY COSTS AND BUSINESS MIX - Co said gross margin declined due to higher memory component costs and business mix, partially offset by favorable foreign currency

  • OPERATING EXPENSES - Co said operating expenses rose mainly due to costs from acquired businesses, including amortization of intangible assets


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$1.61 bln

$1.56 bln (12 Analysts)

Q3 Adjusted EPS

Beat

$4.95

$4.90 (13 Analysts)

Q3 EPS

$3.43


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electronic equipment & parts peer group is "buy"

  • Wall Street's median 12-month price target for Zebra Technologies Corp is $418.00, about 15.7% above its November 2 closing price of $361.13

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago


Reuters Recommended Reads

  • Nov 2 - Advanced Energy Q3 revenue beats on record semiconductor and data center computing sales

  • Nov 2 - Roku Q3 revenue beats estimates on advertising, subscription growth

  • Nov 2 - Chipmaker Onsemi revises Synaptics deal, Q3 results beat


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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