Lincolnshire, Illinois-based Zebra Technologies Corporation (ZBRA) provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. Valued at $11.7 billion by market cap, Zebra operates through Asset Intelligence & Tracking and Enterprise Visibility & Mobility segments. Zebra Technologies has significantly underperformed the broader market over the past year. ZBRA stock has tanked 40.6% over the past 52 weeks and 40.9% on a YTD basis, compared ...

Core Insights - The company aims to enable intelligent operations, which reflects a shift in its vision and business description [1] Company Overview - The session includes a high-level Q&A to provide an overview of the company's operations and vision [1] - Audience participation is encouraged to enhance the interactive nature of the discussion [1]

Summary of Zebra Technologies FY Conference Call Company Overview - **Company**: Zebra Technologies (NasdaqGS: ZBRA) - **Event**: FY Conference Call on November 18, 2025 - **Key Speakers**: Nathan Winters (CFO), Mike Steele (VP of Finance and Investor Relations) Core Industry Insights - **Industry**: Technology and Automation Solutions for Frontline Operations - **Vision**: Transition from "Enterprise Asset Intelligence" to "Enabling Intelligent Operations" to reflect the company's evolution and current offerings [4][6] Key Points and Arguments 1. **Resegmentation of Business**: Zebra has resegmented its operations into two new segments: Connected Frontline and Asset Visibility and Automation, to better align with its current strategy and offerings [6][8] 2. **ELO Acquisition**: The $1.3 billion acquisition of ELO aims to enhance the frontline experience by integrating mobile computing with point-of-sale solutions, expected to generate $400 million in revenue and provide immediate accretive benefits [9][10] 3. **Demand Environment**: The company is experiencing uneven demand across regions, with strong performance in North America and Asia-Pacific, while Europe shows tepid demand, particularly in Germany and France [12][14] 4. **Customer Capital Planning**: Zebra maintains a two- to three-year roadmap with strategic customers, indicating a stable outlook for project deployments, although uncertainty remains regarding the timing of capital expenditures [15][16] 5. **Growth Projections**: The company anticipates a long-term compound annual growth rate (CAGR) of 5%-7%, driven by market leadership in mobile computing and expansion into new markets [25][26] 6. **RFID Technology**: Zebra sees RFID as a significant growth opportunity, with double-digit growth in recent years, emphasizing its role in inventory management and theft prevention [46][48] 7. **Machine Vision**: The integration of machine vision technologies is expected to enhance Zebra's competitive positioning, particularly in high-end inspection markets [52][53] 8. **Healthcare Market**: Adoption in healthcare is slower due to the nature of the industry, but Zebra remains optimistic about long-term growth opportunities, especially with the ELO acquisition [61][63] 9. **Omnichannel Retail**: The company has fully absorbed capacity constraints from previous years and is seeing a return to normal business levels, with ongoing discussions about technology refreshes and new applications [65][67] Additional Important Insights - **Tariff Mitigation**: Zebra has successfully reduced the expected gross profit headwinds from tariffs from $70 million to less than $25 million through proactive pricing and supply chain diversification [31][32] - **AI Integration**: The company is leveraging AI to enhance internal productivity and develop customer-facing applications, focusing on frontline worker solutions [35][39] - **Market Challenges**: Manufacturing remains subdued, with muted growth due to economic uncertainty, particularly in Europe and automotive sectors [57][59] This summary encapsulates the key insights and strategic directions discussed during the Zebra Technologies FY Conference Call, highlighting the company's focus on innovation, market adaptation, and long-term growth potential.

Group 1 - Zebra Technologies Corporation (NASDAQ: ZBRA) is a global leader in digitizing and automating workflows to deliver intelligent operations [6][7] - The company will present at two investor conferences: on Nov. 18 at the Stephens NASH25 Conference and on Dec. 1 at the UBS Global Technology and AI Conference [4][6] - Zebra Technologies provides a portfolio of connected frontline, asset visibility, and automation solutions powered by AI, serving various industries including retail, manufacturing, and healthcare [2][6] Group 2 - The company announced strong third-quarter results for 2025, driven by solid demand, lower-than-expected tariffs, and effective execution by its teams [6] - Zebra Technologies completed the acquisition of Elo Touch Solutions, enhancing its capabilities in customer engagement and automation across multiple sectors [7] - The company will release its third-quarter financial results on Oct. 28, 2025, followed by a conference call to discuss these results [8]

Core Insights - Zebra Technologies Corporation's 18th Annual Global Shopper Study reveals the increasing importance of Gen AI and automation in retail, with 87% of retail leaders emphasizing their role in loss prevention [1] Retail Experience and Shopper Satisfaction - Retailers are focusing on connecting physical and digital experiences through intelligent workflows, which can enhance customer satisfaction and reduce loss [2] - Shopper satisfaction for in-store experiences in Europe has risen to 80%, while online satisfaction has decreased to 74% [2][3] Shopper Priorities and Challenges - Shoppers are prioritizing discounts and promotions due to ongoing inflation, with 67% frustrated by out-of-stocks and 72% by locked-up products [3] - Retailers recognize the need for operational excellence, with 85% of European associates reporting challenges in obtaining timely information [4] Technology and Associate Experience - Effective technology is seen as crucial for improving job satisfaction, with 87% of associates believing it makes their work more enjoyable [5] - 88% of European associates feel that the right technology helps them complete tasks faster [5] Inventory Management and Profitability - Inventory challenges continue to affect shopper satisfaction, with over half of shoppers leaving stores without all intended items [6] - 84% of European retail decision-makers prioritize real-time inventory synchronization, with many planning to implement advanced technologies like computer vision and RFID [7] Revenue Growth through Workflow Improvements - Retailers can achieve up to 1.8-percentage-point increases in revenue growth and profitability by improving inventory management workflows [8] - Optimizing inventory processes is seen as a key strategy for boosting profits from online orders, with a jump from 29% to 38% in prioritization [9] Regional Insights - In Europe, 84% of retail decision-makers feel pressure to synchronize real-time inventory, significantly higher than those focused on pricing and promotions [12] - In North America, 80% of retail associates face challenges in maintaining real-time visibility of out-of-stock products [13] - In Latin America, 60% of shoppers reported leaving stores without all intended items, compared to 52% globally [15]

Core Insights - Zebra Technologies Corporation is a global leader in enterprise asset intelligence solutions, offering products like barcode scanners, mobile computers, and RFID solutions to enhance operational efficiency [1] - Zebra competes with companies such as Honeywell and Datalogic in the automatic identification and data capture (AIDC) industry [1] Financial Performance - Zebra's Return on Invested Capital (ROIC) is 9.20%, while its Weighted Average Cost of Capital (WACC) is 10.94%, resulting in a ROIC to WACC ratio of 0.84, indicating that the company is not generating returns above its cost of capital [2][6] - Paycom Software, Inc. has a ROIC of 18.31% and a WACC of 7.59%, leading to a ROIC to WACC ratio of 2.41, showcasing effective capital utilization [3][6] - IDEXX Laboratories, Inc. leads the peer group with a ROIC of 46.11% and a WACC of 11.04%, achieving a ROIC to WACC ratio of 4.18, highlighting its exceptional ability to generate returns above its cost of capital [4][6] - HubSpot, Inc. has a ROIC of 4.27% and a WACC of 10.96%, resulting in a ROIC to WACC ratio of 0.39, indicating that it, like Zebra, is not covering its cost of capital [5][6]

Core Insights - Zebra Technologies' shares fell by 12.3% following disappointing guidance on third-quarter earnings, despite the actual results being satisfactory [1] - The company's guidance for fourth-quarter sales growth is between 8% to 11%, but this includes a significant favorable impact from acquisitions and foreign exchange [2] - Excluding these factors, the expected sales growth ranges from a decline of 0.5% to an increase of 2.5%, indicating a slowdown in orders [3] Financial Metrics - The current price-to-free cash flow (FCF) multiple for Zebra is 17.1 times the estimated FCF for 2025, suggesting an attractive valuation [4] - The integration of acquired companies is complete, and their contributions should be considered in evaluating Zebra's overall business performance [4] Competitive Landscape - Honeywell's productivity solutions and services (PSS) are experiencing a decline in organic sales, which may create a more favorable competitive environment for Zebra [3][5] - Honeywell is exploring strategic options for PSS, including potential divestiture, which could benefit Zebra in the future [5][7]

Core Insights - Zebra Technologies is a key player in the industrial products sector, specializing in barcode printing, mobile computing, and data capture, and is focused on maintaining its competitive edge through innovation and strategic investments [1] Investment Outlook - Truist Financial has set a price target of $331 for Zebra Technologies, indicating a potential upside of nearly 20% from its current trading price of approximately $276, reflecting confidence in the company's market position and growth prospects [2] - Asset Management One Co. Ltd. increased its holdings in Zebra Technologies by 1.7% during the second quarter, now owning 21,676 shares valued at around $6.7 million, showcasing strong belief in the company's future performance [3] Investment Activity - Other investors, such as Trust Co. of Toledo NA OH and Zions Bancorporation National Association UT, have initiated new positions in Zebra Technologies, with investments valued at approximately $25,000 and $27,000 respectively, indicating growing interest in the company's potential [3] Stock Performance - Zebra Technologies' stock is currently priced at approximately $274.53, with a slight increase of 0.08% or $0.22, and has experienced fluctuations with a daily low of $270.30 and a high of $277 [4] - Over the past year, the stock has seen a high of $427.76 and a low of $205.73, reflecting its volatile nature, and the company has a market capitalization of about $13.96 billion with a trading volume of 537,161 shares on the NASDAQ exchange [4]

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1: Analyst Background - Michael Del Monte is a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. Group 2: Investment Philosophy - Investment recommendations are based on a comprehensive understanding of the investment ecosystem, highlighting the interconnectedness of various sectors and companies [1].

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1: Analyst Background - Michael Del Monte is a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. Group 2: Investment Philosophy - Investment recommendations are based on a comprehensive understanding of the investment ecosystem, highlighting the interconnectedness of various sectors and companies [1].