We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zebra (ZBRA) Up 14.5% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Zebra Technologies (ZBRA - Free Report) . Shares have added about 14.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Zebra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Zebra Technologies Q3 Earnings & Revenues Miss Estimates
Zebra Technologies reported third-quarter 2022 adjusted earnings (excluding 39 cents from non-recurring items) of $3.65 per share, missing the Zacks Consensus Estimate of $4.20. The bottom-line decreased year over year.
Total revenues of $1,378 million missed the Zacks Consensus Estimate of $1,476 million. The top line decreased 4% year over year. Consolidated organic net sales decreased 3.2% year over year. Acquisitions contributed 2.1% to the top line, while foreign-currency translation had an adverse impact of 2.9% on sales.
Segmental Performance
Revenues from the Asset Intelligence & Tracking segment were $415 million, up 9.8% year over year. Organic net sales increased 12.4% in the AIT segment. Foreign-currency translation hurt segmental revenues by 2.6%.
The Enterprise Visibility & Mobility segment’s revenues were $963 million, down approximately 9% year over year. Organic net sales declined 8.8%. Acquisitions contributed 2.8% to segmental revenues, while foreign-currency translations hurt revenues by 3%.
Margin Profile
In the third quarter, Zebra Technologies’ cost of sales totaled $750 million, down 5.1% year over year. Total operating expenses were $426 million, up 4.2% year over year.
ZBRA reported net income of $170 million in the third quarter, reflecting a decrease of 14.6%.
Balance Sheet and Cash Flow
Exiting the third quarter, Zebra Technologies had cash and cash equivalents of $81 million compared with $332 million at the end of December 2021. Long-term debt was $2,017 million compared with $922 million at the end of December 2021.
In the first nine months of 2022, Zebra Technologies generated net cash of $221 million from operating activities compared with $836 million at the end of the year-ago period. In the first nine months of 2022, the company incurred capital expenditures of $51 million, while free cash flow was $170 million. During the same period, the company repurchased shares worth $655 million.
Q4 Outlook
Zebra Technologies expects fourth-quarter 2022 adjusted net sales to either decrease up to 2% or increase up to 1%. The company expects a 2 percentage-point positive impact from acquired assets and an approximate 4 percentage-point adversity from foreign-currency translation.
Zebra Technologies expects an adjusted EBITDA margin of 22-23% for the fourth quarter. ZBRA anticipates an adjusted effective tax rate of approximately 17-18% for the ongoing quarter.
Adjusted earnings are predicted to be in the band of $4.50-$4.80. Free cash flow is expected to be at least $400 million for the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -12.45% due to these changes.
VGM Scores
At this time, Zebra has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Zebra has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Zebra belongs to the Zacks Manufacturing - Thermal Products industry. Another stock from the same industry, John Bean (JBT - Free Report) , has gained 3.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
JBT reported revenues of $555.4 million in the last reported quarter, representing a year-over-year change of +16.3%. EPS of $1.27 for the same period compares with $1.02 a year ago.
JBT is expected to post earnings of $1.52 per share for the current quarter, representing a year-over-year change of +65.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for JBT. Also, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zebra (ZBRA) Up 14.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Zebra Technologies (ZBRA - Free Report) . Shares have added about 14.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Zebra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Zebra Technologies Q3 Earnings & Revenues Miss Estimates
Zebra Technologies reported third-quarter 2022 adjusted earnings (excluding 39 cents from non-recurring items) of $3.65 per share, missing the Zacks Consensus Estimate of $4.20. The bottom-line decreased year over year.
Total revenues of $1,378 million missed the Zacks Consensus Estimate of $1,476 million. The top line decreased 4% year over year. Consolidated organic net sales decreased 3.2% year over year. Acquisitions contributed 2.1% to the top line, while foreign-currency translation had an adverse impact of 2.9% on sales.
Segmental Performance
Revenues from the Asset Intelligence & Tracking segment were $415 million, up 9.8% year over year. Organic net sales increased 12.4% in the AIT segment. Foreign-currency translation hurt segmental revenues by 2.6%.
The Enterprise Visibility & Mobility segment’s revenues were $963 million, down approximately 9% year over year. Organic net sales declined 8.8%. Acquisitions contributed 2.8% to segmental revenues, while foreign-currency translations hurt revenues by 3%.
Margin Profile
In the third quarter, Zebra Technologies’ cost of sales totaled $750 million, down 5.1% year over year. Total operating expenses were $426 million, up 4.2% year over year.
ZBRA reported net income of $170 million in the third quarter, reflecting a decrease of 14.6%.
Balance Sheet and Cash Flow
Exiting the third quarter, Zebra Technologies had cash and cash equivalents of $81 million compared with $332 million at the end of December 2021. Long-term debt was $2,017 million compared with $922 million at the end of December 2021.
In the first nine months of 2022, Zebra Technologies generated net cash of $221 million from operating activities compared with $836 million at the end of the year-ago period. In the first nine months of 2022, the company incurred capital expenditures of $51 million, while free cash flow was $170 million. During the same period, the company repurchased shares worth $655 million.
Q4 Outlook
Zebra Technologies expects fourth-quarter 2022 adjusted net sales to either decrease up to 2% or increase up to 1%. The company expects a 2 percentage-point positive impact from acquired assets and an approximate 4 percentage-point adversity from foreign-currency translation.
Zebra Technologies expects an adjusted EBITDA margin of 22-23% for the fourth quarter. ZBRA anticipates an adjusted effective tax rate of approximately 17-18% for the ongoing quarter.
Adjusted earnings are predicted to be in the band of $4.50-$4.80. Free cash flow is expected to be at least $400 million for the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -12.45% due to these changes.
VGM Scores
At this time, Zebra has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Zebra has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Zebra belongs to the Zacks Manufacturing - Thermal Products industry. Another stock from the same industry, John Bean (JBT - Free Report) , has gained 3.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
JBT reported revenues of $555.4 million in the last reported quarter, representing a year-over-year change of +16.3%. EPS of $1.27 for the same period compares with $1.02 a year ago.
JBT is expected to post earnings of $1.52 per share for the current quarter, representing a year-over-year change of +65.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for JBT. Also, the stock has a VGM Score of C.