Core Insights - Zebra Technologies Corporation (ZBRA) is positioned to benefit from growth across its segments, strategic acquisitions, and shareholder-friendly initiatives [1][7] Business Strength - ZBRA is experiencing growth in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking segments, with revenues in the former increasing by 6.7% year-over-year in Q2 2025, driven by higher sales of mobile computing and data capture solutions [4] - The Asset Intelligence & Tracking segment saw a 5.3% year-over-year sales increase, supported by rising demand for printing solutions and RFID products [4] Expansion Efforts - Zebra Technologies has enhanced its business through acquisitions, including the planned acquisition of Elo Touch Solutions, which is expected to expand its addressable market by approximately $8 billion [5] - The acquisition of Photoneo in March 2025 will integrate 3D machine vision solutions with ZBRA's existing technologies, enhancing its capabilities in high-value applications [5] - Acquisitions contributed 0.2% to total revenues in Q2 2025 [5] Rewards to Shareholders - ZBRA has been proactive in rewarding shareholders, repurchasing $250 million in shares during the first half of 2025, compared to $47 million in the same period of 2024 [6] - The company has a share repurchase program authorized for up to $1 billion, with $597 million remaining at the end of Q2 2025 [6]

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].

Core Insights - Zebra Technologies Corporation (ZBRA) is positioned to benefit from strong performance across its business segments, operational excellence, and strategic acquisitions, focusing on growth opportunities and long-term market positioning [1] Business Performance - The Enterprise Visibility & Mobility segment has seen an 8.1% year-over-year revenue increase in Q1 2025, driven by higher sales of mobile computing and data capture solutions, along with increased service and software sales [2] - The Asset Intelligence & Tracking segment experienced an 18.4% year-over-year sales increase in Q1 2025, supported by solid demand for printing solutions and RFID products [3] - For Q2 2025, the company anticipates net sales growth of 4-7% compared to the same quarter last year, reflecting overall business strength [3] Acquisition Strategy - Zebra Technologies acquired Photoneo in March 2025, enhancing its 3D machine vision solutions by integrating Photoneo's technology with its existing capabilities [4] - The acquisition of Matrox Imaging in June 2022 has allowed Zebra to strengthen its fixed industrial scanning and machine vision portfolio [5] Stock Performance and Shareholder Returns - ZBRA's stock has increased by 44.6% over the past three months, outperforming the industry average growth of 42% [8] - The company has repurchased shares worth $125 million in Q1 2025, compared to $47 million in Q1 2024, with a remaining buyback capacity of $721 million from a $1 billion program authorized in May 2022 [9] - Free cash flow for Q1 2025 reached $158 million, marking a 42.3% year-over-year increase, supporting shareholder-friendly policies [9] Earnings Estimates - The Zacks Consensus Estimate for ZBRA's 2025 earnings is $14.51 per share, reflecting a 7.3% year-over-year increase, while the estimate for 2026 earnings is $16.41 per share, indicating a 13.1% increase from the previous year [10]