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Zebra (ZBRA) to Report Q4 Earnings: What's in the Cards?
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Zebra Technologies Corporation (ZBRA - Free Report) is slated to report fourth-quarter 2021 results on Feb 10, before market open.
The company’s earnings surpassed expectations in each of the trailing four quarters, the surprise being 12.89%, on average. In the last reported quarter, earnings of $4.55 per share beat the Zacks Consensus Estimate of $3.98 by 14.32%.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have lost 16.4% compared with the industry’s decline of 17.5%.
Key Factors
Zebra is expected to have benefited from healthy demand for its enterprise mobile computing, intelligent automation solutions, printing & supplies as well as services and software in the fourth quarter. Strength across the company’s manufacturing, transportation, retail, healthcare and e-commerce markets is likely to have supported its performance in the quarter. Also, its investment in growth initiatives, along with its focus on supply-chain optimization and cost management actions, is likely to have been a tailwind.
Acquired assets boosted Zebra’s sales by 1.4%, 1.6% and 1.3% in the first, second and third quarters of 2021, respectively. The trend is likely to have continued in the fourth quarter, owing to strength across its acquired businesses. The company’s acquisition of antuit.ai (October 2021) strengthened its offerings in the consumer products industries. The buyout of Fetch Robotics, Inc. (August 2021) enhanced its capability to offer a comprehensive line of advanced robotics solutions to customers. Also, the acquired business of Reflexis Systems (September 2020) boosted its growth opportunities in the retail market.
However, escalating costs and expenses have been a concern for Zebra over the past few quarters. In third-quarter 2021, its cost of sales increased 23.6% year over year, while total operating expenses soared 19.2%. Despite its focus on supply-chain optimization, it has been witnessing supply-chain challenges and an increase in raw material costs. High costs and expenses might have affected its margin and profitability in the fourth quarter as well.
Given Zebra’s extensive regional presence, its operations are subject to global economic, political risks and forex woes. A stronger U.S. dollar might have hurt the company's overseas business in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fourth-quarter total revenues is currently pegged at $1,447 million, suggesting 10.6% and 0.8% growth from the year-ago and quarter-ago reported numbers, respectively.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Zebra has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $4.32.
Zebra Technologies Corporation Price and EPS Surprise
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Zacks Consensus Estimate for Deere & Company’s earnings is pegged at $2.22 per share for first-quarter fiscal 2022 (ended January 2022). DE’ shares have gained 4.6% in the past three months.
Expedia Group, Inc. (EXPE - Free Report) has an Earnings ESP of +34.77% and a Zacks Rank of 3, currently.
The Zacks Consensus Estimate for Expedia’s earnings is pegged at 97 cents per share for the fourth quarter of 2021. EXPE’s shares have lost 0.4% in the past three months.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. SEE’s shares have lost 1.7% in the past three months.
Image: Bigstock
Zebra (ZBRA) to Report Q4 Earnings: What's in the Cards?
Zebra Technologies Corporation (ZBRA - Free Report) is slated to report fourth-quarter 2021 results on Feb 10, before market open.
The company’s earnings surpassed expectations in each of the trailing four quarters, the surprise being 12.89%, on average. In the last reported quarter, earnings of $4.55 per share beat the Zacks Consensus Estimate of $3.98 by 14.32%.
In the past three months, the company’s shares have lost 16.4% compared with the industry’s decline of 17.5%.
Key Factors
Zebra is expected to have benefited from healthy demand for its enterprise mobile computing, intelligent automation solutions, printing & supplies as well as services and software in the fourth quarter. Strength across the company’s manufacturing, transportation, retail, healthcare and e-commerce markets is likely to have supported its performance in the quarter. Also, its investment in growth initiatives, along with its focus on supply-chain optimization and cost management actions, is likely to have been a tailwind.
Acquired assets boosted Zebra’s sales by 1.4%, 1.6% and 1.3% in the first, second and third quarters of 2021, respectively. The trend is likely to have continued in the fourth quarter, owing to strength across its acquired businesses. The company’s acquisition of antuit.ai (October 2021) strengthened its offerings in the consumer products industries. The buyout of Fetch Robotics, Inc. (August 2021) enhanced its capability to offer a comprehensive line of advanced robotics solutions to customers. Also, the acquired business of Reflexis Systems (September 2020) boosted its growth opportunities in the retail market.
However, escalating costs and expenses have been a concern for Zebra over the past few quarters. In third-quarter 2021, its cost of sales increased 23.6% year over year, while total operating expenses soared 19.2%. Despite its focus on supply-chain optimization, it has been witnessing supply-chain challenges and an increase in raw material costs. High costs and expenses might have affected its margin and profitability in the fourth quarter as well.
Given Zebra’s extensive regional presence, its operations are subject to global economic, political risks and forex woes. A stronger U.S. dollar might have hurt the company's overseas business in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fourth-quarter total revenues is currently pegged at $1,447 million, suggesting 10.6% and 0.8% growth from the year-ago and quarter-ago reported numbers, respectively.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Zebra has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $4.32.
Zebra Technologies Corporation Price and EPS Surprise
Zebra Technologies Corporation price-eps-surprise | Zebra Technologies Corporation Quote
Zacks Rank: The company carries a Zacks Rank #3.
Key Picks
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
Deere & Company (DE - Free Report) has an Earnings ESP of +17.33% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deere & Company’s earnings is pegged at $2.22 per share for first-quarter fiscal 2022 (ended January 2022). DE’ shares have gained 4.6% in the past three months.
Expedia Group, Inc. (EXPE - Free Report) has an Earnings ESP of +34.77% and a Zacks Rank of 3, currently.
The Zacks Consensus Estimate for Expedia’s earnings is pegged at 97 cents per share for the fourth quarter of 2021. EXPE’s shares have lost 0.4% in the past three months.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. SEE’s shares have lost 1.7% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.