Core Insights - Zebra Technologies (ZBRA) has recently attracted investor attention after a significant post-earnings decline, bringing the stock to a crucial technical support zone despite beating expectations and raising guidance [2][3] - The stock has dropped nearly 30% this year, raising concerns about the recovery pace in its core automation and enterprise mobility segments [2] - Historically, the current support range ($260.59 – $288.03) has been a turning point for ZBRA, with an average peak return of 31.2% following previous buying interest at this level [3] Financial Metrics - Revenue growth for Zebra Technologies stands at 12.9% for the last twelve months (LTM) but has an average decline of -2.4% over the past three years [5] - The company has a free cash flow margin of nearly 15.1% and an operating margin of 15.3% LTM [5] - The lowest annual revenue growth recorded in the past three years was -20.8% [5] - ZBRA stock has a price-to-earnings (PE) multiple of 27.2, indicating a higher valuation compared to the S&P [5] Market Performance - Zebra Technologies has experienced significant stock declines during major market downturns, including a 51% drop during the Dot-Com crash and a 68% decline during the recent inflation crisis [6] - The stock has also faced declines in favorable market conditions due to earnings reports and business updates [7] Portfolio Insights - The Trefis High Quality Portfolio, which includes Zebra Technologies, has a history of outperforming benchmarks like the S&P 500, S&P mid-cap, and Russell 2000 indices [8] - This portfolio has provided better returns with reduced risk, indicating a less volatile investment option [8]

Core Insights - Zebra Technologies reported third-quarter results that exceeded Wall Street expectations, with sales rising 4.8% year over year to $1.32 billion and adjusted earnings per share of $3.88, surpassing the consensus of $3.73 [1] - Despite strong results, Zebra's stock fell by 15.8% due to concerns over the sustainability of future growth, particularly influenced by the recent acquisition of Elo Touch Solutions [1][2] Financial Performance - The company's sales growth of 4.8% was above the average analyst expectation of $1.31 billion, while adjusted earnings per share of $3.88 exceeded the consensus estimate [1] - The fourth-quarter guidance provided by management also surpassed current analyst views, but it heavily relies on the Elo acquisition, which adds $8 billion to Zebra's addressable market [2] Guidance Analysis - When excluding the expected $100 million in revenues from Elo, the year-over-year growth rate for the fourth quarter drops from 9.5% to just 1%, which is significantly below the Street's consensus estimate of 6.2% [3] - The guidance appears optimistic but is misleading as it incorporates contributions from the Elo acquisition, which may not be reflected in most analyst forecasts [2][3] Market Conditions - CEO Bill Burns indicated that the impact of tariffs on costs was minimal, adding only $8 million to the bottom line, but noted that a shaky economy is leading to reduced orders from clients facing budget constraints [6] - Some clients have accelerated their orders into the third quarter, resulting in a diminished order pipeline for the upcoming period [6] Demand Outlook - The company anticipates organic revenue growth of about 6% and organic earnings growth of 16% for the year, excluding the acquisition [7] - Overall, the demand outlook remains stable, but there is significant pressure on Zebra's order books, indicating potential challenges ahead [8]

Core Insights - Zebra Technologies Corporation (ZBRA) reported third-quarter 2025 adjusted earnings of $3.88 per share, exceeding the Zacks Consensus Estimate of $3.75, marking an 11.2% increase from $3.49 per share in the same quarter last year [1][9] - Total revenues reached $1.32 billion, surpassing the consensus estimate of $1.31 billion, with a year-over-year growth of 5.2% driven by strong performance in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking segments [2][9] Financial Performance - Revenues from the Asset Intelligence & Tracking segment increased by 11% year over year to $455 million, exceeding the Zacks Consensus Estimate of $426 million, with organic net sales rising by 10.6% [3] - The Enterprise Visibility & Mobility segment reported revenues of $865 million, a 2.4% increase year over year, though it fell short of the consensus estimate of $887 million, with organic net sales growing by 2% [4] Margin and Expenses - Zebra Technologies' cost of sales for the third quarter was $686 million, up 6.9% year over year, while total operating expenses also increased by 6.9% to $451 million [5] - The company reported a net income of $101 million, down from $137 million in the same period last year [5] Balance Sheet and Cash Flow - At the end of the third quarter, Zebra Technologies had cash and cash equivalents of $1,053 million, an increase from $901 million at the end of December 2024, while long-term debt rose to $2.11 billion from $2.09 billion [6] - In the first nine months of 2025, the company generated net cash of $560 million from operating activities, down from $707 million in the previous year, with free cash flow amounting to $504 million compared to $666 million in the year-ago period [7] Guidance - For the fourth quarter of 2025, Zebra Technologies expects net sales to increase between 8-11% year over year, with adjusted EBITDA margin anticipated at approximately 22% and adjusted earnings per share projected in the range of $4.20-$4.40 [8] - For the full year 2025, the company has raised its adjusted earnings outlook to $15.80 per share from the previous range of $15.25-$15.75, with an expected net sales growth of 8% year over year [9][10]

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Financial Data and Key Metrics Changes - The company reported sales of $1.3 billion for Q3, representing a 5% increase year-on-year, with an adjusted EBITDA margin of 21.6%, a 20 basis point improvement, and non-GAAP diluted earnings per share of $3.88, which is 11% higher than the previous year [4][6] - Adjusted gross margin declined by 90 basis points to 48.2%, primarily due to higher U.S. import tariffs [8] Business Line Data and Key Metrics Changes - The Enterprise Visibility and Mobility (EVM) segment grew by 2%, led by mobile computing, while the Asset Intelligence and Tracking (AIT) segment grew by 11%, driven by RFID and printing [7] - The software recurring revenue business grew modestly during the quarter [7] Market Data and Key Metrics Changes - North America sales increased by 6%, with double-digit growth in mobile computing and RFID, although there was weakness in Canada [8] - Asia Pacific sales surged by 23%, led by Australia, New Zealand, and India, while Latin America saw an 8% increase [8] - EMEA sales declined by 3%, with mixed performance across the region [8] Company Strategy and Development Direction - The company is focused on digitizing and automating workflows, with a strong emphasis on AI, mobile computing, and cloud solutions [11][12] - The acquisition of Elo Touch Solutions is expected to enhance the company's capabilities in self-service and point-of-sale solutions, increasing the addressable market [17][19] - The company plans to commit $500 million to share repurchases over the next 12 months to drive long-term shareholder value [6] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are navigating an uncertain macro environment, leading to uneven demand across geographies and vertical markets [6][33] - The company anticipates sales growth of 8% to 11% in Q4, with adjusted EBITDA margin expected to be around 22% [10] - Management expressed confidence in sustainable long-term growth driven by trends such as labor constraints and advancements in AI [19] Other Important Information - The company has successfully mitigated the impact of tariffs, expecting a gross profit impact of approximately $24 million for the full year [9] - The company is transitioning to new reporting segments: Connected Frontline and Asset Visibility and Automation [7] Q&A Session Summary Question: Demand trends and Q4 guidance - Management indicated that Q3 demand was solid, with some customers ordering earlier to meet peak season demand, but noted that EMEA continues to show weakness [24][25] Question: EVM segment growth - Management acknowledged strong growth in mobile computing but noted a decline in data capture due to tough comparisons [26][27] Question: 2026 outlook and demand characterization - Management stated that while customers remain cautious, they are well-positioned for long-term growth, particularly with AI advancements [32][33] Question: Large project funnel and customer conversations - Management reported consistent demand trajectory but noted that some customers are spreading projects over multiple quarters due to macro uncertainty [40][41] Question: Elo Touch Solutions impact on Q4 - Elo is expected to contribute approximately $100 million in Q4, with overall organic demand remaining flat [50][51] Question: RFID growth and future visibility - Management confirmed strong double-digit growth in RFID, with continued opportunities across various sectors [52][53] Question: AI opportunities and hardware refresh cycles - Management sees potential for higher-end devices and a refresh cycle driven by AI advancements, with first revenues expected in 2026 [56][57] Question: Pricing actions related to tariffs - Management noted that pricing actions have not significantly impacted demand, with an expected annual benefit of around $60 million from these actions [70][71] Question: OBBBA tax impact - Management expects a reduction in cash taxes due to the new tax bill, with an incremental cash benefit of over $200 million expected over the next two years [72][74]

Financial Data and Key Metrics Changes - For Q3 2025, Zebra Technologies reported sales of $1.3 billion, a 5% increase year-on-year, with an adjusted EBITDA margin of 21.6%, reflecting a 20 basis point improvement, and non-GAAP diluted earnings per share of $3.88, which is 11% higher than the previous year [4][6][10] - The company anticipates Q4 sales growth between 8% and 11%, with adjusted EBITDA margin expected to be approximately 22% and non-GAAP diluted earnings per share projected in the range of $4.20-$4.40 [10][19] Business Line Data and Key Metrics Changes - The enterprise visibility and mobility segment grew 2%, primarily driven by mobile computing, while the asset intelligence and tracking segment grew 11%, led by RFID and printing [7][8] - The software and recurring revenue business saw modest growth during the quarter [7] Market Data and Key Metrics Changes - North America sales increased by 6%, with double-digit growth in mobile computing and RFID, although there was weakness in Canada [8] - Asia Pacific sales surged by 23%, driven by strong performance in Australia, New Zealand, and India [8] - Latin America experienced an 8% sales increase, while EMEA sales declined by 3%, with mixed performance across the region [8] Company Strategy and Development Direction - Zebra Technologies is focused on digitizing and automating workflows, leveraging its portfolio of innovative solutions, including hardware, software, and services [11][12] - The company is excited about growth opportunities from its recent acquisition of Elo Touch Solutions, which enhances its capabilities in self-service and point-of-sale solutions [17][19] - The company plans to report under two new segments: connected frontline and asset visibility and automation, aligning with its strategic priorities [7][12] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is solid growth across most business areas, customers are navigating an uncertain macro environment, leading to uneven demand across geographies and vertical markets [6][34] - The company remains optimistic about long-term growth opportunities, particularly in AI and automation, which are expected to drive demand for its solutions [19][34] Other Important Information - Zebra Technologies has committed $500 million to share repurchases over the next 12 months, reflecting confidence in long-term shareholder value [6][8] - The company has successfully navigated supply chain challenges, including tariffs, and expects to mitigate the impact of U.S. import tariffs entering 2026 [9][10] Q&A Session Summary Question: Demand trends and Q4 guidance - Management indicated that Q3 demand was strong, with solid growth across regions, but noted that Q4 guidance implies a deceleration in organic growth due to tough comparisons [24][25] Question: EVM segment growth - Management highlighted strong growth in mobile computing but noted a decline in data capture, impacting overall EVM performance [27][28] Question: 2026 outlook and demand across verticals - Management acknowledged cautious customer sentiment and uneven demand across different environments, but expressed confidence in sustainable growth driven by AI opportunities [34][35] Question: Large project funnel and customer conversations - Management reported consistent demand trajectory and ongoing capital spending from customers, despite some caution due to macro uncertainties [41][43] Question: RFID growth and future visibility - Management confirmed strong double-digit growth in RFID and ongoing opportunities across various verticals, including retail and logistics [55][56] Question: AI opportunities and hardware refresh cycles - Management discussed the potential for higher-end devices and the importance of AI in driving future growth, with expected revenues from AI solutions starting in 2026 [60][62] Question: Elo acquisition impact - Management confirmed that Elo is expected to contribute $100 million in Q4, aligning with previous growth expectations, and highlighted ongoing operational synergies [72][73] Question: Pricing actions related to tariffs - Management noted that pricing actions have not significantly impacted demand and are in line with industry trends [76] Question: OBBBA tax impact - Management expects a reduction in cash taxes due to the new tax bill, with an anticipated cash benefit of over $200 million in the next two years [78]

Financial Data and Key Metrics Changes - Zebra Technologies reported Q3 2025 sales of $1.3 billion, a 5% increase year-on-year, with an adjusted EBITDA margin of 21.6%, reflecting a 20 basis point improvement, and non-GAAP diluted earnings per share of $3.88, which is 11% higher than the previous year [5][6][11] - Adjusted gross margin declined by 90 basis points to 48.2%, primarily due to higher U.S. import tariffs [9] Business Line Data and Key Metrics Changes - The Enterprise Visibility and Mobility segment grew by 2%, driven by mobile computing, while the Asset Intelligence and Tracking segment saw an 11% increase, led by RFID and printing [7] - RFID has been a consistent growth area, achieving double-digit growth over the past several years [12][15] Market Data and Key Metrics Changes - North America sales grew by 6%, with double-digit growth in mobile computing and RFID, although there was weakness in Canada [8] - Asia Pacific sales increased by 23%, led by Australia, New Zealand, and India, while Latin America saw an 8% increase [9] - EMEA sales declined by 3%, with mixed performance across the region [9] Company Strategy and Development Direction - Zebra Technologies is focused on digitizing and automating workflows, with a strong emphasis on AI and mobile computing solutions [12][19] - The recent acquisition of Elo Touch Solutions is expected to enhance capabilities in self-service and point of sale, increasing the addressable market [18] - The company plans to commit $500 million to share repurchases over the next 12 months to drive long-term shareholder value [6] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are navigating an uncertain macro environment, leading to uneven demand across geographies and vertical markets [6][36] - The company anticipates sales growth of 8% to 11% in Q4, with adjusted EBITDA margin expected to be around 22% [11] - Management expressed confidence in sustainable long-term growth driven by trends such as labor constraints and advancements in AI [19] Other Important Information - Zebra Technologies has successfully mitigated the impact of tariffs, expecting a $24 million gross profit impact for the full year 2025, with improvements in Q4 [10] - The company is transitioning to report under two new segments: Connected Frontline and Asset Visibility and Automation [7] Q&A Session Summary Question: Demand trends and Q4 guidance - Management indicated that Q3 demand was strong, but Q4 guidance implies a deceleration in organic growth due to tough comparisons and timing of orders [24][25] Question: EVM segment growth - The EVM segment saw strong growth in mobile computing but faced challenges in data capture due to difficult comparisons [26] Question: 2026 outlook and demand characterization - Management noted cautious customer sentiment and uneven demand across verticals, but expressed confidence in long-term growth opportunities [35] Question: AI features and growth catalysts - AI features are expected to drive hardware upgrades and software opportunities, with first revenues anticipated in 2026 [41] Question: Large project funnel and customer conversations - Demand trajectory remains consistent, with customers maintaining capital spending but cautious about accelerating future projects [43] Question: Elo Touch Solutions contribution - Elo is expected to contribute approximately $100 million in Q4, aligning with previous guidance [52][68] Question: Pricing actions related to tariffs - Pricing actions have not significantly impacted demand, with an expected annual benefit of around $60 million from these actions [71] Question: OBBBA tax impact - The new tax bill is expected to reduce cash taxes by $50 million to $60 million this year, with a modest impact on the overall tax rate [72][74]

Zebra Technologies (ZBRA) came out with quarterly earnings of $3.88 per share, beating the Zacks Consensus Estimate of $3.75 per share. This compares to earnings of $3.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.47%. A quarter ago, it was expected that this producer of printers for bar codes, plastic cards and, radio-frequency identification tags would post earnings of $3.31 per share when it actually produced earnin ...

Financial Performance - Zebra Technologies reported net sales of $1,320 million, a 5.2% increase compared to $1,255 million in 3Q24 [14] - Organic net sales growth was 4.8% [10, 14] - Adjusted EBITDA margin increased by 20bps to 21.6% [10, 14] - Non-GAAP diluted EPS increased by 11.2% to $3.88 [10, 14] Segment and Regional Performance - Asset Intelligence & Tracking segment organic net sales grew by 10.6% [15] - Enterprise Visibility & Mobility segment organic net sales grew by 2.0% [15] - Asia Pacific region organic net sales grew by 23% [15] - Latin America region organic net sales grew by 8% [15] - North America region organic net sales grew by 6% [15] - EMEA region organic net sales declined by 3% [15] Cash Flow and Balance Sheet - Free cash flow was $504 million year-to-date [17] - The company closed the Elo Touch Solutions acquisition for $1.3 billion [17] - The company has $1,053 million in cash and cash equivalents [17] - The company expects to substantially mitigate U S import tariffs entering 2026 [18]

Financial Performance - Net sales for Q3 2025 were $1,320 million, a year-over-year increase of 5.2% from $1,255 million in Q3 2024[4] - Net income for Q3 2025 was $101 million, down 26.3% from $137 million in Q3 2024, resulting in a net income per diluted share of $1.97[7] - Adjusted EBITDA for Q3 2025 increased to $285 million, representing a 6.3% year-over-year growth from $268 million in Q3 2024[8] - Total net sales for the three months ended September 27, 2025, reached $1,320 million, a 5.2% increase compared to $1,255 million for the same period in 2024[27] - Operating income for the three months ended September 27, 2025, was $183 million, compared to $191 million for the same period in 2024, indicating a slight decrease[27] - Net income for the nine months ended September 27, 2025, was $349 million, down from $365 million in the same period of 2024[29] - Reported net sales for the three months ended September 27, 2025, were $1,320 million, an increase from $1,255 million for the same period in 2024, representing a growth of 5.2%[34] - Non-GAAP net income for the three months ended September 27, 2025, was $198 million, up from $181 million in the same period of 2024, indicating a growth of 9.4%[37] Segment Performance - The Enterprise Visibility & Mobility segment reported net sales of $865 million, while the Asset Intelligence & Tracking segment reported $455 million, reflecting increases of 2.0% and 10.6% respectively[5] - Consolidated organic net sales growth for the three months ended September 27, 2025, was 4.8% after adjustments for foreign currency translations and acquisitions[31] - Gross profit for the nine months ended September 27, 2025, was $1,895 million, up from $1,765 million in the same period of 2024, reflecting a strong performance[27] - Adjusted gross profit for the nine months ended September 27, 2025, was $1,904 million, compared to $1,772 million for the same period in 2024, reflecting an increase of 7.4%[34] Cash Flow and Debt - Free cash flow for the full year 2025 is expected to exceed $800 million, with an additional $500 million in share repurchases planned over the next 12 months[13] - The company had cash and cash equivalents of $1,053 million and total debt of $2,183 million as of September 27, 2025[10] - Cash and cash equivalents at the end of the period were $1,053 million, an increase from $901 million at the beginning of the period[29] - Free cash flow for the nine months ended September 27, 2025, was $504 million, down from $666 million for the same period in 2024, a decrease of 24.3%[42] Expenses and Margins - Adjusted gross margin for Q3 2025 was 48.2%, down from 49.1% in Q3 2024, primarily due to U.S. import tariff expenses[5] - Operating expenses increased to $451 million in Q3 2025, up from $422 million in the prior year, mainly due to higher stock-based compensation[6] - Research and development expenses for the three months ended September 27, 2025, were $146 million, up from $141 million in the same period of 2024, reflecting continued investment in innovation[27] - Adjusted gross margin for the three months ended September 27, 2025, was 50.8%, compared to 49.1% for the same period in 2024, indicating an improvement[34] - Basic earnings per share (GAAP) for the three months ended September 27, 2025, were $1.98, down from $2.65 in the same period of 2024, a decrease of 25.3%[37] Future Outlook - The company expects Q4 2025 sales growth between 8% and 11%, including approximately 850 basis points of favorable impact from acquisitions and foreign currency translation[11] - Non-GAAP diluted earnings per share for Q4 2025 are projected to be in the range of $4.20 to $4.40, assuming an adjusted effective tax rate of approximately 18%[12] - The company plans to change its reportable segments to Connected Frontline (CF) and Asset Visibility & Automation (AVA) starting in the fourth quarter, aligning with its operational strategy[44] - Future outlook includes continued investment in new segments such as Connected Frontline and Asset Visibility & Automation[47] Acquisitions - The company acquired businesses for $62 million during the nine months ended September 27, 2025, indicating ongoing market expansion efforts[29]