Zebra(US:ZBRA)2024-10-29 11:40Financial 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]