Zebra(US:ZBRA)2024-07-30 11:41Financial 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]