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Zebra Technologies Q3 Earnings & Revenues Top Estimates, Rise Y/Y
ZebraZebra(US:ZBRA) ZACKSยท2024-10-29 15:31

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]