Zebra(US:ZBRA) ZACKS·2025-04-29 15:55Core Viewpoint - Zebra Technologies Corporation (ZBRA) reported strong first-quarter 2025 results, with adjusted earnings per share of $4.02, exceeding estimates and showing a significant year-over-year increase of 41.5% from $2.84 [1][2] Financial Performance - Total revenues reached $1.31 billion, surpassing the consensus estimate of $1.28 billion, and reflecting an 11.3% year-over-year growth driven by the Enterprise Visibility & Mobility and Asset Intelligence & Tracking segments [2] - The Asset Intelligence & Tracking segment saw revenues rise by 17.9% year over year to $462 million, exceeding the consensus estimate of $434 million, with organic net sales increasing by 18.4% [2] - The Enterprise Visibility & Mobility segment reported revenues of $846 million, an 8.1% increase year over year, though slightly below the consensus estimate of $852 million, with organic net sales up by 8.6% [3] Margin and Cost Analysis - Cost of sales for the first quarter totaled $663 million, an increase of 8.3% year over year, while total operating expenses rose by 11.4% to $450 million [4] - Net income for the quarter was $136 million, compared to $115 million in the same period last year [4] Balance Sheet and Cash Flow - At the end of the first quarter, cash and cash equivalents stood at $879 million, down from $901 million at the end of December 2024, while long-term debt increased slightly to $2.1 billion [5] - The company generated net cash of $178 million from operating activities, up from $125 million in the previous year, with free cash flow amounting to $158 million compared to $111 million a year ago [6] Guidance - For the second quarter of 2025, ZBRA expects net sales to grow between 4-7% year over year, with an anticipated adjusted EBITDA margin of approximately 19% and adjusted earnings per share projected in the range of $3.00-$3.50 [7] - For the full year 2025, the adjusted earnings outlook has been revised to a range of $13.75-$14.75 per share, with net sales expected to increase by 3-7% year over year and free cash flow projected to be at least $700 million [8]