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Zebra (ZBRA) to Acquire Matrox, Strengthen Product Offerings
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Zebra Technologies Corporation (ZBRA - Free Report) recently announced its intention to acquire Matrox Imaging. The deal, valued at $875 million, is likely to be financed through the combination of company’s cash on hand and its credit facility.
Zebra’s shares jumped 1.8% yesterday to eventually close the trading session at $387.08.
Based in Montreal, Canada, Matrox is a leading developer and provider of hardware and software products used in machine vision applications. Some of the major products offered by the company are 3D sensors, vision controllers, smart cameras, input/output cards and frame grabbers. It has a global presence with branches in the United States, the U.K., Germany, Ireland and Hong Kong, and sales representatives across 25 countries.
Acquisition Rationale
With the acquisition, Zebra will be able to enhance its portfolio of machine vision product and solution offerings, which empower users with operational visibility and provide important business and market insights. This will also complement Zebra’s increasing expertise in software, machine learning and deep learning.
The buyout will enable Zebra to leverage Matrox’s expertise in the imaging market and combine it with its fixed industrial scanning and machine vision portfolio. This will likely boost the company’s competency to provide a comprehensive line of automation and vision technology solutions to its customers.
The buyout is anticipated to be completed in 2022, subject to certain regulatory approvals.
Other Notable Buyouts
Zebra intends to strengthen and expand its business through acquisitions. In this regard, its acquisition of antuit.ai (October 2021) has complemented the planning and demand forecasting module for its retail software portfolio. Its Fetch Robotics buyout (August 2021) strengthened its capability to offer a comprehensive line of advanced robotics solutions to customers. Also, with the buyout of Adaptive Vision (May 2021), the company entered into the fixed industrial scanning and machine vision end markets and boosted its fixed industrial scanning and machine vision solution offerings.
Zacks Rank, Price Performance and Estimate Revisions
Zebra, with approximately $20.5 billion market capitalization, currently carries a Zacks Rank #2 (Buy). The company is poised to benefit from robust demand for its products and solutions, acquired assets and strong cash flows in the quarters ahead. However, it has been dealing with the adverse impacts of high cost of sales and operating expenses over time.
Image Source: Zacks Investment Research
In the past three months, the company’s share price has decreased 34.2% compared with the industry’s decline of 31.6%.
The Zacks Consensus Estimate for Zebra’s earnings is pegged at $19.54 for 2022, up 0.5% from the 30-day-ago figure. The consensus estimate for 2023 earnings is pegged at $21.83, up 0.3% over the same time frame.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Industrial Products sector are discussed below.
In the past 30 days, Franklin Electric’s earnings estimates have been raised 10.9% for 2022. FELE’s shares have lost 7.7% in the past three months.
Standex International Corporation (SXI - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.
In the past 30 days, Standex’s earnings estimates have been stable for fiscal 2022 (ending June 2022). SXI’s shares have gained 1.6% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 16.82%.
Ferguson’s earnings estimates increased 0.5% for fiscal 2022 (ending July 2022) in the past 30 days. FERG’s shares have lost 12.3% in the past three months.
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Zebra (ZBRA) to Acquire Matrox, Strengthen Product Offerings
Zebra Technologies Corporation (ZBRA - Free Report) recently announced its intention to acquire Matrox Imaging. The deal, valued at $875 million, is likely to be financed through the combination of company’s cash on hand and its credit facility.
Zebra’s shares jumped 1.8% yesterday to eventually close the trading session at $387.08.
Based in Montreal, Canada, Matrox is a leading developer and provider of hardware and software products used in machine vision applications. Some of the major products offered by the company are 3D sensors, vision controllers, smart cameras, input/output cards and frame grabbers. It has a global presence with branches in the United States, the U.K., Germany, Ireland and Hong Kong, and sales representatives across 25 countries.
Acquisition Rationale
With the acquisition, Zebra will be able to enhance its portfolio of machine vision product and solution offerings, which empower users with operational visibility and provide important business and market insights. This will also complement Zebra’s increasing expertise in software, machine learning and deep learning.
The buyout will enable Zebra to leverage Matrox’s expertise in the imaging market and combine it with its fixed industrial scanning and machine vision portfolio. This will likely boost the company’s competency to provide a comprehensive line of automation and vision technology solutions to its customers.
The buyout is anticipated to be completed in 2022, subject to certain regulatory approvals.
Other Notable Buyouts
Zebra intends to strengthen and expand its business through acquisitions. In this regard, its acquisition of antuit.ai (October 2021) has complemented the planning and demand forecasting module for its retail software portfolio. Its Fetch Robotics buyout (August 2021) strengthened its capability to offer a comprehensive line of advanced robotics solutions to customers. Also, with the buyout of Adaptive Vision (May 2021), the company entered into the fixed industrial scanning and machine vision end markets and boosted its fixed industrial scanning and machine vision solution offerings.
Zacks Rank, Price Performance and Estimate Revisions
Zebra, with approximately $20.5 billion market capitalization, currently carries a Zacks Rank #2 (Buy). The company is poised to benefit from robust demand for its products and solutions, acquired assets and strong cash flows in the quarters ahead. However, it has been dealing with the adverse impacts of high cost of sales and operating expenses over time.
Image Source: Zacks Investment Research
In the past three months, the company’s share price has decreased 34.2% compared with the industry’s decline of 31.6%.
The Zacks Consensus Estimate for Zebra’s earnings is pegged at $19.54 for 2022, up 0.5% from the 30-day-ago figure. The consensus estimate for 2023 earnings is pegged at $21.83, up 0.3% over the same time frame.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Industrial Products sector are discussed below.
Franklin Electric Co., Inc. (FELE - Free Report) presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 17.4%, on average.
In the past 30 days, Franklin Electric’s earnings estimates have been raised 10.9% for 2022. FELE’s shares have lost 7.7% in the past three months.
Standex International Corporation (SXI - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.
In the past 30 days, Standex’s earnings estimates have been stable for fiscal 2022 (ending June 2022). SXI’s shares have gained 1.6% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 16.82%.
Ferguson’s earnings estimates increased 0.5% for fiscal 2022 (ending July 2022) in the past 30 days. FERG’s shares have lost 12.3% in the past three months.