Zebra Technologies Q4 Earnings & Revenues Top Estimates, Rise Y/Y

Core Insights - Zebra Technologies Corporation (ZBRA) reported fourth-quarter 2024 adjusted earnings of $4.00 per share, exceeding the Zacks Consensus Estimate of $3.95, and significantly up from $1.71 per share in the same quarter last year [1] - Total revenues for the quarter reached $1.33 billion, surpassing the consensus estimate of $1.31 billion, and reflecting a year-over-year increase of 32.2% [2] Financial Performance - For the full year 2024, ZBRA reported net revenues of $4.98 billion, an increase of 8.7% year over year, with adjusted earnings of $13.52 per share, up 37.7% year over year [3] - The Asset Intelligence & Tracking segment saw revenues rise 29.5% year over year to $448 million, exceeding the Zacks Consensus Estimate of $441 million [4] - The Enterprise Visibility & Mobility segment's revenues totaled $886 million, up 33.6% year over year, also surpassing the consensus estimate of $871 million [5] Margin and Cost Analysis - In the fourth quarter, Zebra Technologies' cost of sales was $686 million, a 22.3% increase year over year, while total operating expenses rose 13.1% to $423 million [6] - The company reported a net income of $163 million compared to $17 million in the year-ago period [6] Balance Sheet and Cash Flow - At the end of the fourth quarter, Zebra Technologies had cash and cash equivalents of $901 million, up from $137 million at the end of December 2023, while long-term debt increased slightly to $2.09 billion [7] - In 2024, the company generated net cash of $1.01 billion from operating activities, a significant increase from $4 million cash used in the previous year, with free cash inflow amounting to $954 million [8] Guidance - For the first quarter of 2025, ZBRA expects net sales to increase by 8-11% year over year, with adjusted earnings per share projected in the range of $3.50-$3.70 [9] - For the full year 2025, the company anticipates net sales growth of 3-7% year over year and adjusted earnings between $14.75-$15.25 per share, with free cash flow expected to be at least $750 million [10]