- Zebra Tech’s net sales for the fourth quarter were $1.33 billion, surpassing the $1.32 billion estimate, and marking a 32% increase year-over-year (y/y).
- Tangible products net sales reached $1.09 billion, exceeding expectations and showing a 39% rise y/y.
- Services and software net sales were $249 million, up by 8.7% from the previous year, beating the $243 million estimate.
- The adjusted earnings per share (EPS) were $4.00, significantly higher than last year’s $1.71 and slightly above the $3.95 estimate.
- Adjusted gross margin remained steady at 48.7%, in line with estimates and up from 44.6% y/y.
- Adjusted EBITDA came in at $295 million, a 90% increase y/y, surpassing the estimate of $293.7 million.
- Adjusted EBITDA margin increased to 22.1%, exceeding last year’s 15.4%, but slightly below the estimate of 22.3%.
- Research and Development (R&D) expenses rose by 19% to $138 million, just under the estimated $140.6 million.
- CEO Bill Burns attributed the strong performance to robust year-end spending by North American retail customers.
- Analyst recommendations included 9 buys, 10 holds, and no sells.
Zebra Technologies Corp on Smartkarma
Analyst coverage of Zebra Technologies Corp on Smartkarma has been positive, with Baptista Research providing insights into the company’s strong performance in the third quarter of fiscal year 2024. They highlighted Zebra’s solid execution across its diverse portfolio, reporting impressive sales of $1.3 billion, a 31% increase from the previous year. Moreover, Zebra achieved a robust adjusted EBITDA margin of 21.4% – a significant improvement of 980 basis points. The company also saw a remarkable non-GAAP diluted earnings per share of $3.49, quadrupling the prior year’s figure.
A look at Zebra Technologies Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts have evaluated Zebra Technologies Corp using Smartkarma Smart Scores, where higher scores indicate a better outlook for the company. Zebra Technologies Corp received a score of 2 for Value, suggesting moderate attractiveness in terms of its current stock price compared to its fundamental value. The company attained a score of 1 for Dividend, signaling a lower focus on distributing dividends to its shareholders.
In terms of growth potential, Zebra Technologies Corp was assigned a score of 3, indicating a positive outlook for expansion and development. The company also demonstrated resilience with a score of 3, showcasing its ability to withstand challenging market conditions. Moreover, Zebra Technologies Corp received a Momentum score of 3, implying a favorable trend in its stock performance. Overall, the company’s diverse product offerings, including enterprise mobile computers and advanced data capture devices, position it for long-term success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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