Zebra Technologies Positioned for Strong Q4 Earnings Report
Lincolnshire, Illinois-based Zebra Technologies Corporation (ZBRA) specializes in asset intelligence solutions across the global automatic identification and data capture sector. With a market capitalization of $21.7 billion, Zebra operates through two main segments: Asset Intelligence & Tracking, and Enterprise Visibility & Mobility.
Anticipated Earnings Growth
The tech company is scheduled to announce its fourth-quarter earnings before the market opens on Thursday, Feb. 13. Analysts project Zebra will report a non-GAAP profit of $3.66 per share, reflecting a significant increase of 161.4% compared to last year’s $1.40 per share. Notably, Zebra has consistently exceeded analysts’ earnings per share (EPS) estimates for the past four quarters. In the last reported quarter, its adjusted EPS of $3.16 exceeded consensus expectations by 9%.
Strong Fiscal Projections
For the entirety of fiscal 2024, Zebra is expected to achieve an adjusted EPS of $11.80, a rise of 33.9% from $8.81 in fiscal 2023. Looking ahead to fiscal 2025, the company anticipates a 25.6% year-over-year increase in earnings, projecting a $14.82 per share outcome.
Stock Performance Analysis
ZBRA shares have appreciated by 64.4% over the past year, outperforming the Technology Select Sector SPDR Fund’s (XLK) 19.8% growth and the S&P 500 Index’s ($SPX) 25.8% increase during the same period.
Impressive Q3 Results
Following the release of stellar Q3 results on Oct. 29, Zebra’s stock surged 5.8%. The company reported a remarkable 31.3% year-over-year increase in total net sales, reaching nearly $1.3 billion, which exceeded Wall Street’s forecasts. Additionally, Zebra saw a significant enhancement in profitability, with gross margins expanding by 418 basis points to 48.8%, resulting in gross profits growing by 43.6% to $613 million.
Positive Market Sentiment
Given the strong business performance and demand growth, Zebra has provided promising guidance for Q4 earnings and sales while adjusting its full-year cash flow outlook upward, boosting investor confidence in the company.
Analysts’ Ratings Overview
The consensus on ZBRA stock is relatively positive with a “Moderate Buy” rating. Among the 16 analysts monitoring the stock, eight recommend a “Strong Buy,” one advises a “Moderate Buy,” six suggest “Hold,” and one recommends a “Strong Sell.” Currently, ZBRA trades slightly above its mean price target of $419.21.
On the date of publication, Aditya Sarawgi did not hold positions in any of the securities mentioned in this article. All information and data are provided for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here. More news from Barchart
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