Zebra Technologies to Report Q2 Earnings: What's in the Offing?

Core Viewpoint - Zebra Technologies Corporation (ZBRA) is expected to report second-quarter 2025 results on August 5, with projected revenues of $1.28 billion, reflecting a 5% year-over-year growth, and adjusted earnings of $3.31 per share, indicating a 4.1% increase from the previous year [1][9]. Revenue Estimates - The Zacks Consensus Estimate for revenues is $1.28 billion, which indicates a growth of 5% from the year-ago quarter's figure [1]. - The Enterprise Visibility & Mobility segment is expected to generate revenues of $853 million, reflecting a 4% increase from the previous year [3]. - The Asset Intelligence and Tracking segment's revenues are projected to be $430 million, indicating an 8.3% growth from the year-ago number [4]. Earnings Performance - The consensus estimate for adjusted earnings has remained stable over the past 60 days, with an impressive earnings surprise history, outperforming the consensus estimate in each of the last four quarters, averaging an 8.4% surprise [2]. - In the last reported quarter, Zebra Technologies delivered an earnings surprise of 11.7% [2]. Segment Performance Drivers - The Enterprise Visibility & Mobility segment's performance is driven by strong demand for mobile computing products and data capture solutions, along with increased sales of services and software due to retail software wins [3]. - The Asset Intelligence and Tracking segment is expected to benefit from solid demand for printing solutions and RFID products [4]. Strategic Acquisitions - Zebra Technologies is focused on acquisitions to expand its product offerings and customer base, such as the acquisition of Photoneo in March 2025, enhancing its portfolio in 3D machine vision solutions [5]. Cost and Currency Challenges - The company's performance has been negatively impacted by high costs and expenses, with increased raw material costs expected to affect the bottom line [6]. - A stronger U.S. dollar is likely to have hurt Zebra Technologies' overseas business due to its extensive geographic presence [6]. Earnings Prediction Model - The current model does not predict an earnings beat for ZBRA, as the Earnings ESP is 0.00%, with both the Zacks Consensus Estimate and the Most Accurate Estimate at $3.31 [7][8]. Zacks Rank - Zebra Technologies currently holds a Zacks Rank of 3, indicating a hold position [10].