Financial Performance - Net sales for Q2 2024 were $1,217 million, a slight increase of 0.2% compared to $1,214 million in Q2 2023[4] - Gross profit for Q2 2024 was $589 million, with a gross margin of 48.4%, up from 47.9% in the prior year, reflecting a 50 basis point improvement[5] - Net income for Q2 2024 decreased to $113 million, or $2.17 per diluted share, down 21.5% from $144 million, or $2.78 per diluted share, in Q2 2023[6] - Net sales for the second quarter of 2024 were $1,217 million, a year-over-year increase of 0.2%[26] - Net income for the second quarter was $113 million, with diluted earnings per share of $2.17[26] - Non-GAAP diluted earnings per share decreased year-over-year to $3.18[26] - Adjusted EBITDA for the second quarter was $250 million, representing 20.5% of adjusted net sales, down from 21.2% in the prior year[29] - Operating income for the three months ended June 29, 2024, was $167 million, down from $194 million in the same period last year, representing a decline of 13.9%[50] - Net income for the six months ended June 29, 2024, was $228 million, compared to $294 million for the same period last year, indicating a decrease of 22.4%[50] Sales and Revenue Guidance - The company expects Q3 2024 net sales to increase between 25% and 28% year-over-year, with a favorable impact from foreign currency translation[8] - Full year 2024 net sales growth guidance has been raised to between 4% and 7% compared to the prior year[9] - The Enterprise Visibility & Mobility segment reported net sales of $820 million, an 8.2% increase year-over-year, while the Asset Intelligence & Tracking segment saw a 14.4% decrease to $397 million[27] Cash Flow and Debt - Free cash flow for 2024 is now expected to be at least $700 million[10] - Free cash flow for the first six months of 2024 was $389 million, with net cash provided by operating activities of $413 million[30] - Payments of debt for the six months ended June 29, 2024, totaled $694 million, compared to $183 million in the previous year[42] - As of June 29, 2024, cash and cash equivalents were $411 million, while total debt stood at $2,183 million[7] - The company reported a cash increase of $273 million in the six months ended June 29, 2024, compared to a decrease of $49 million in the prior year[42] Operating Expenses - Operating expenses increased to $422 million from $387 million in the prior year, primarily due to incentive compensation expenses[28] - The company incurred total operating expenses of $422 million for the three months ended June 29, 2024, compared to $387 million for the same period last year, an increase of 9.0%[50] - Research and development expenses increased to $146 million for the three months ended June 29, 2024, from $130 million in the same period last year, reflecting a growth of 12.3%[50] Restructuring and Cost Savings - The company incurred total charges of $123 million related to exit and restructuring plans through Q2 2024, with an expected total of approximately $130 million[8] - The company is on track to achieve $120 million in annualized net expense savings from its Exit and Restructuring plans[31] Adjusted Metrics - Adjusted gross margin for Q2 2024 was 48.6%, an increase from 48.0% in the prior year[5] - The company expects adjusted EBITDA margin to be between 20% and 21% for the full year[32] - The company anticipates non-GAAP diluted earnings per share to be in the range of $3.00 to $3.30[32] Currency Impact - The impact of foreign currency translations on consolidated net sales was a decline of 0.9% for the three months ended June 29, 2024[43]

The Zacks Consensus Estimate for earnings has remained stable in the past 60 days. The company has a decent earnings surprise history, having outperformed the consensus estimate in three of the preceding four quarters while missing in one. The average surprise was 8.6%. Let's see how things have shaped up for Zebra Technologies this earnings season. However, weak demand for data capture and mobile computing solutions is likely to have offset the gains. The Zacks Consensus Estimate for the Enterprise Visibil ...

Growth Across Services and Software: Zebra Technologies is seeing growth across businesses. Increased units under support contracts and retail software wins are aiding sales of services and software. Increased sales of RFID products, driven by the robust demand in retail and retail apparel markets, and increased parcel tracking in transportation logistics markets and airports are aiding the company's growth. Also, Zebra Technologies has been advancing digital capabilities, optimizing the supply chain, expan ...

Core Viewpoint - Zebra Technologies is experiencing a stock price reversal, with analysts showing increased optimism and raising price targets, indicating potential for further growth in the coming months [4][8][9]. Group 1: Analyst Ratings and Market Sentiment - Analysts have upgraded Zebra Technologies' sentiment rating from Hold to Moderate Buy, with a price target set at $305, which is 7% below the consensus [3]. - The stock has seen a 50% increase from its recent low, with analysts projecting a further 5% to 7% gain soon, potentially leading to a total increase of 50% over the next 12 to 18 months [8][9]. - Institutional ownership has doubled over the last three years, indicating strong investor conviction and net bullish activity for three consecutive quarters [9]. Group 2: Financial Performance and Growth Outlook - Zebra Technologies faced challenges in Q1, resulting in a year-over-year contraction, but management has increased guidance due to better-than-expected performance [4]. - The company anticipates mid-single to low-double-digit quarterly growth, with analysts forecasting sustained growth at this rate into F2025 [4][6]. - The projected earnings growth rate is 22.96%, driven by the company's leading position in data capture and an upcoming AI-inspired upgrade cycle [6]. Group 3: Technical and Operational Insights - The technical outlook for Zebra Technologies is bullish, with expectations of retesting highs near $335 and $350 by year-end [14]. - The company has improved its balance sheet and shareholder equity over the past year, with debt leverage now less than 0.7x equity, positioning it well for future investments [13]. - Despite not paying dividends or aggressively repurchasing shares, Zebra is focused on efficiency and growth investments [13].

Group 1: Market Overview - U.S. stocks are near record highs, with the S&P 500 achieving its 30th record close in 2024, driven by a tech rally and consumer discretionary stocks [4] - Analysts believe the S&P 500 has further growth potential, with a focus on top-ranked stocks such as Royal Caribbean Cruises, Alphabet, Goldman Sachs, Hasbro, and Zebra Technologies [5] - Wall Street analysts have raised year-end targets for the S&P 500, with Evercore ISI increasing its target to 6,000 and Goldman Sachs to 5,600 [16] Group 2: Earnings Growth - Corporate earnings rebounded with a 6% growth in Q1, the highest in nearly two years, primarily driven by tech earnings, but growth is also seen in Utilities and Energy sectors [8] - Royal Caribbean has an earnings growth estimate of 63.81% for the current year, with a forward P/E of 13.39X [11] - Alphabet's earnings growth estimate is 31.11% for the current year, with a forward P/E of 23.25X [12] - Goldman Sachs has an earnings growth estimate of 59.91% for the current year, with a forward P/E of 12.21X [13] - Hasbro's earnings growth estimate is 45.67% for the current year, with a forward P/E of 16.82X [14] - Zebra Technologies has an earnings growth estimate of 23.28% for the current year, with a forward P/E of 24.89X [15] Group 3: Economic Indicators - Traders see a nearly 56.7% chance of a rate cut in September, with a high probability of a 50 bps cut by December [7] - Federal Reserve officials have indicated potential rate cuts later in the year, citing improving economic data [19] Group 4: Historical Context - Historical data shows that high valuations do not necessarily lead to imminent downturns, as seen during the Covid-19 reopening trade and the dot-com boom [3][18] - Presidential election years have historically performed well for the S&P 500, with an average return of 7.4% [17]

Zebra Technologies Corporation (ZBRA) recently announced the pricing of its private offering of senior notes worth $500 million in aggregate principal amount. The offering is anticipated to close on May 28, 2024, conditional on certain customary closing conditions. The company's shares gained 1.6% yesterday, thereby ending the trading session at $326.98. Inside the Headlines The senior notes carry an interest rate of 6.500% and are scheduled to mature on Jun 1, 2032. Notably, the senior notes are Zebra Tech ...

Zebra Technologies (ZBRA) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this producer of printers for bar codes, plastic cards and, radio-frequency identification tags reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock pr ...

I would now like to turn the conference over to Mike Steele, Vice President, Investor Relations. Please go ahead. Mike Steele Good morning and welcome to Zebra's first quarter earnings conference call. This presentation is being simulcast on our website at investors.zebra.com and will be archived there for at least 1 year. Our forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially and we refer you to the ...

Zebra Technologies Corporation (ZBRA) reported first-quarter 2024 adjusted earnings of $2.84 per share. The bottom line slumped 27.9% year over year.Total revenues of $1.2 billion surpassed the Zacks Consensus Estimate of $1.1 billion. The top line plunged 16.4% year over year due to softness across end markets. Consolidated organic net sales declined 16.8% year over year. Foreign currency translation had an adverse impact of 0.4% on sales.Segmental PerformanceRevenues from the Asset Intelligence & Tracking ...

Zebra Technologies (ZBRA) came out with quarterly earnings of $2.84 per share, beating the Zacks Consensus Estimate of $2.46 per share. This compares to earnings of $3.94 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.45%. 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 $1.63 per share when it actually produced earnin ...