Core Viewpoint - Zebra Technologies (ZBRA) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][2] Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding Zebra's earnings prospects, which is expected to positively influence its stock price [2] - For the current quarter, Zebra is projected to earn $3.95 per share, representing a +130.99% change from the previous year, with a 20.56% increase in the Zacks Consensus Estimate over the last 30 days [4] - For the full year, the expected earnings per share is $14.04, indicating a +42.97% change from the prior year, with a consensus estimate increase of 11.51% due to five upward revisions [5] Zacks Rank - Zebra has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with significant outperformance compared to the S&P 500 [6] - Stocks with Zacks Rank 1 and 2 have shown a strong track record, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][6] Stock Performance - Zebra shares have increased by 5.5% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [7]

Financial Data and Key Metrics Changes - In Q3 2024, Zebra Technologies reported sales of almost $1.3 billion, a 31% increase year-over-year, with an adjusted EBITDA margin of 21.4%, reflecting a 980 basis point increase [7][12] - Non-GAAP diluted earnings per share reached $3.49, which is four times the prior year, indicating strong free cash flow generation [7][14] - Adjusted gross margin increased by 430 basis points to 49.1%, driven by volume leverage and favorable business mix [14] Business Line Data and Key Metrics Changes - The Asset Intelligence & Tracking segment grew by 25.8%, primarily due to printing and RFID solutions [12] - The Enterprise Visibility & Mobility segment saw a 33% increase in sales, with strong growth in mobile computing and data capture solutions [12] - Services and software recurring revenue businesses grew by 4% in the quarter [12] Market Data and Key Metrics Changes - North America sales grew by 22%, led by mobile computing and printing [13] - EMEA sales surged by 47%, particularly strong in Northern Europe [13] - Asia-Pacific sales increased by 24%, with notable momentum in Southeast Asia and India, while Latin America sales grew by 42%, especially in Mexico and Brazil [13] Company Strategy and Development Direction - Zebra Technologies is focused on digitizing and automating workflows, leveraging a comprehensive portfolio of innovative solutions, including hardware, software, and services [20] - The company continues to invest approximately 10% of revenues into research and development to drive innovation [21] - Recent product launches include advanced AI and machine learning solutions, rugged tablets, and self-checkout kiosks, expanding Zebra's addressable market [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted a broadening recovery across all vertical markets, with expectations for higher year-end spending in North America and EMEA [9][30] - The manufacturing sector is still lagging, and visibility regarding large deployments in 2025 remains limited [9][30] - The company raised its full-year outlook for sales, profitability, and free cash flow, expecting Q4 sales growth between 28% and 31% [11][18] Other Important Information - Zebra generated over $650 million in free cash flow in the first nine months of 2024, with a net debt to adjusted EBITDA leverage ratio of 1.6x [15][19] - The company resumed share repurchase activity in Q3, indicating increased flexibility due to improved cash flow [15][19] Q&A Session Summary Question: Demand recovery and large North America retail project wins - Management observed a broadening recovery across all vertical markets, with retail and e-commerce outperforming in Q3 and expected to continue into Q4 [32][34] Question: Trends with distributors and restocking decisions - Distributors are seeing an uptick in business, and management is working closely with them to ensure adequate inventory levels for increased demand [36][37] Question: Large orders impact on Q3 and Q4 - Management noted that larger orders are returning, particularly in retail and logistics, contributing to the positive outlook for Q4 [41][42] Question: Visibility around large deployments and CapEx spending - Limited visibility remains for large deployments in 2025, but management is optimistic about continued recovery based on strong second-half performance [54][66] Question: Update on machine vision business - The machine vision segment is still facing challenges, particularly in manufacturing, but there are signs of stabilization and growth in software [56][58] Question: Healthcare market performance - Growth in healthcare is attributed to both new accounts and expansion within existing accounts, with a focus on automating workflows and improving safety [76][78] Question: OpEx initiatives and future expectations - Management is focused on scaling and driving productivity across the existing OpEx infrastructure, leveraging AI for efficiency [79] Question: RFID growth opportunities - Strong growth in RFID was reported, with expanding applications beyond apparel into grocery and other sectors [97][99] Question: Tariff planning and supply chain resilience - The company is actively working on mitigation plans for potential new tariffs and diversifying its supply base to improve overall resiliency [86][102]

Core Insights - Zebra Technologies Corporation (ZBRA) reported adjusted earnings of $3.49 per share for Q3 2024, exceeding the Zacks Consensus Estimate of $3.24 and significantly up from $0.87 in the same quarter last year [1] - Total revenues reached $1.26 billion, surpassing the consensus estimate of $1.21 billion, marking a 31.3% year-over-year increase driven by strong performance in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking segments [2] Segment Performance - The Asset Intelligence & Tracking segment generated revenues of $410 million, a 26.5% increase year over year, exceeding the Zacks Consensus Estimate of $391 million, with organic net sales up 25.8% [3] - The Enterprise Visibility & Mobility segment reported revenues of $845 million, up 33.7% year over year, surpassing the consensus estimate of $819 million, with organic net sales increasing by 33% [4] Financial Metrics - Cost of sales for Q3 totaled $642 million, a 21.4% increase year over year, while total operating expenses decreased by 3.9% to $422 million [5] - The company reported a net income of $137 million compared to a loss of $15 million in the previous year [5] Balance Sheet and Cash Flow - At the end of Q3, Zebra Technologies had cash and cash equivalents of $676 million, up from $137 million at the end of December 2023, with long-term debt totaling $2.08 billion [6] - In the first nine months of 2024, the company generated net cash of $707 million from operating activities, compared to a cash outflow of $145 million in the same period last year, with free cash inflow amounting to $665.9 million [7] Guidance - For Q4, Zebra Technologies expects net sales to increase by 28-31% year over year, with a favorable foreign-currency translation impact of 1% [8] - Adjusted EBITDA margin is anticipated to be 22% in Q4, with adjusted earnings per share projected between $3.80 and $4.00 [8] - For the full year 2024, the company expects free cash flow to be at least $850 million [8]

Financial Performance - Net sales for Q3 2024 were $1,255 million, a year-over-year increase of 31.3% from $956 million in Q3 2023[3] - Gross profit reached $613 million, up 43.6% from $427 million in the prior year, with a gross margin of 48.8% compared to 44.7%[5] - Net income for Q3 2024 was $137 million, or $2.64 per diluted share, compared to a net loss of $15 million, or $0.28 loss per diluted share, in the prior year[8] - Adjusted EBITDA for Q3 2024 was $268 million, representing a 141.4% increase from $111 million in Q3 2023, with an adjusted EBITDA margin of 21.4%[9] - Organic net sales growth for Q3 2024 was 30.6%, reflecting strong demand recovery and execution by the teams[4] - Operating income for the three months ended September 28, 2024, was $191 million, a significant recovery from an operating loss of $12 million in the same period last year[26] - The company reported a basic earnings per share of $2.65 for the three months ended September 28, 2024, compared to a loss of $0.28 per share in the same period last year[26] - Non-GAAP net income for September 2024 was $181 million, with diluted earnings per share of $2.64[35] Segment Performance - The Enterprise Visibility & Mobility (EVM) segment net sales were $845 million, a 33.0% increase year-over-year, while the Asset Intelligence & Tracking (AIT) segment net sales were $410 million, up 25.8%[4] - Reported GAAP consolidated net sales growth for AIT was 26.5%, while consolidated organic net sales growth was 25.8%[29] - For the three months ended September 28, 2024, reported GAAP consolidated net sales were $1,199 million, with a gross margin of 47.5%[33] - Adjusted gross margin for AIT was 48.8% for the three months ended September 28, 2024[32] Cash Flow and Liquidity - Free cash flow for the full year is expected to be at least $850 million[11] - Cash and cash equivalents increased significantly to $676 million as of September 28, 2024, compared to $61 million at the end of the previous year[27] - Cash flows from operating activities for the nine months ended September 28, 2024, were $707 million, a significant improvement from a cash outflow of $145 million in the same period last year[27] - Free cash flow for the period ending September 28, 2024, was $666 million, compared to a negative $193 million for the same period in 2023[37] - Net cash provided by operating activities increased to $707 million from a negative $145 million year-over-year[37] Cost Management and Outlook - The company completed restructuring actions that generated approximately $120 million in annualized net cost savings, with $110 million realized to date[7] - The full-year outlook for sales growth has been increased, with Q4 sales growth expected between 28% and 31% compared to the prior year[11] - Non-GAAP diluted earnings per share for Q4 are expected to be in the range of $3.80 to $4.00, assuming an adjusted effective tax rate of approximately 17%[11] Research and Development - Research and development expenses increased to $141 million for the three months ended September 28, 2024, compared to $127 million in the same period last year, indicating a focus on innovation[26] Assets and Liabilities - Total assets grew to $7,690 million as of September 28, 2024, up from $7,306 million at the end of 2023, marking a 5.3% increase[24] - Total liabilities remained stable at $4,269 million as of September 28, 2024, compared to $4,270 million at the end of 2023[24]

Zebra Technologies Corporation (ZBRA) is slated to release third-quarter 2024 results on Oct. 29, before market open.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for earnings has decreased 0.6% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 11.9%.The Zacks Consensus Estimate for revenues is pegged at $1.21 billio ...

Zebra Technologies (ZBRA) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

Photo by Michael M. Santiago/Getty Images Getty Images The stock market is likely to rally into yearend. As market watchers know, most S&P profits accrue in the fourth quarter of any year. Needless to say, many stocks rally at this time of the year, but some are seasonally stronger than the market. Here are a pair of stocks that traditionally exceed the averages at this time of the year. In addition, these equities are supported by positive technical readings. Zebra Technologies has risen 91% of the time fr ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Zebra Technologies (ZBRA) . This company, which is in the Zacks Manufacturing - Thermal Products industry, shows potential for another earnings beat. This producer of printers for bar codes, plastic cards and, radio-frequency identification tags has an established record of topping earnings estimates, especially when looking a ...

Zebra Technologies Corporation (ZBRA) has been benefiting from the solid momentum in its Enterprise Visibility & Mobility segment. Higher sales of mobile computing products are driving the segment's revenues, which increased 8.6% year over year in the second quarter of 2024. Also, increased sales of services and software and contributions from recent acquisitions bode well for the segment. Over time, the company has steadily strengthened its business through acquisitions. ZBRA's acquisition of Matrox Imagin ...

valentinrussanov/E+ via Getty Images Zebra Technologies (NASDAQ:ZBRA) is the global leader in Automatic Identification and Data Capture industry ("AIDC"). Zebra has a broad range of products and solutions to optimize workflow for their customers, serving sectors such as retail and e-commerce, transportation, logistics, and digital manufacturing. Digitalization and automation are long-term growth drivers for the company. I am initiating a 'Buy' rating with a one-year target price of $360 per share. Solutions ...