Zebra Technologies Corporation (ZBRA - Free Report) reported first-quarter 2024 adjusted earnings of $2.84 per share. The bottom line slumped 27.9% year over year.
Total revenues of $1.2 billion surpassed the Zacks Consensus Estimate of $1.1 billion. The top line plunged 16.4% year over year due to softness across end markets. Consolidated organic net sales declined 16.8% year over year. Foreign currency translation had an adverse impact of 0.4% on sales.
Segmental Performance
Revenues from the Asset Intelligence & Tracking (AIT) segment declined 24.9% year over year to $392 million. The Zacks Consensus Estimate for the same was pegged at $378 million.
Organic net sales decreased 25.3% in the AIT segment. Foreign-currency translation hurt segmental revenues by 0.4%.
The Enterprise Visibility & Mobility segment’s revenues totaled $783 million, down 11.3% year over year. The consensus estimate for the same was pegged at $768 million. Organic net sales declined 11.8%. Foreign-currency translation had an adverse impact of 0.5%.
Margin Profile
In first-quarter 2024, Zebra Technologies’ cost of sales totaled $612 million, down 17.1% year over year. Total operating expenses decreased 8.6% year over year to $404 million.
ZBRA reported a net income of $115 million compared with $150 million in the year-ago period.
Balance Sheet and Cash Flow
Zebra Technologies had cash and cash equivalents of $127 million at the end of the first quarter compared with $137 million at the end of December 2023. Long-term debt totaled $1.8 billion compared with $2 billion at the end of December 2023.
In the first three months of 2024, Zebra Technologies generated net cash of $125 million in operating activities against $76 million cash used at the end of the year-ago period. The company incurred a capital expenditure of $14 million in the same time frame. Free cash inflow amounted to $111 million against free cash outflow of $92 million in the year-ago period.
Guidance
For the second quarter of 2024, Zebra Technologies, carrying a current Zacks Rank #3 (Hold) at present, expects net sales to decline 1-5% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adjusted EBITDA margin is anticipated to be slightly above 19% for the quarter. Adjusted earnings per share (EPS) are expected to be in the band of $2.60-$2.90.
For 2024, the company expects net sales to increase 1-5% from the prior-year level. Adjusted EPS is anticipated to be in the range of $11.25-$12.25 for the year. The effective tax rate is expected to be 17%. The adjusted EBITDA margin is anticipated to be almost 20%. ZBRA expects free cash flow to be at least $600 million for the year.
Performance of Other Industrial Companies
IDEX Corporation’s (IEX - Free Report) first-quarter 2024 adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. On a year-over-year basis, the bottom line decreased approximately 10.1%.
In the quarter, IDEX’s net sales of $800.5 million underperformed the consensus estimate of $805 million. The top line also decreased 5.3% year over year.
A. O. Smith Corporation’s (AOS - Free Report) first-quarter 2024 adjusted earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 99 cents. The bottom line increased 6% on a year-over-year basis.
Net sales of $978.8 million missed the consensus estimate of $995 million. However, the top line inched up 1% year over year, driven by strong demand for commercial water heaters in North America.
W.W. Grainger, Inc. (GWW - Free Report) has reported earnings per share of $9.62 in first-quarter 2024, beating the Zacks Consensus Estimate of $9.58. The bottom line improved 0.1% year over year.
Grainger’s quarterly revenues rose 3.5% year over year to $4.24 billion. The top line missed the consensus estimate of $4.27 billion.
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Zebra Technologies Corporation (ZBRA - Free Report) reported first-quarter 2024 adjusted earnings of $2.84 per share. The bottom line slumped 27.9% year over year.
Total revenues of $1.2 billion surpassed the Zacks Consensus Estimate of $1.1 billion. The top line plunged 16.4% year over year due to softness across end markets. Consolidated organic net sales declined 16.8% year over year. Foreign currency translation had an adverse impact of 0.4% on sales.
Segmental Performance
Revenues from the Asset Intelligence & Tracking (AIT) segment declined 24.9% year over year to $392 million. The Zacks Consensus Estimate for the same was pegged at $378 million.
Organic net sales decreased 25.3% in the AIT segment. Foreign-currency translation hurt segmental revenues by 0.4%.
The Enterprise Visibility & Mobility segment’s revenues totaled $783 million, down 11.3% year over year. The consensus estimate for the same was pegged at $768 million. Organic net sales declined 11.8%. Foreign-currency translation had an adverse impact of 0.5%.
Margin Profile
In first-quarter 2024, Zebra Technologies’ cost of sales totaled $612 million, down 17.1% year over year. Total operating expenses decreased 8.6% year over year to $404 million.
ZBRA reported a net income of $115 million compared with $150 million in the year-ago period.
Balance Sheet and Cash Flow
Zebra Technologies had cash and cash equivalents of $127 million at the end of the first quarter compared with $137 million at the end of December 2023. Long-term debt totaled $1.8 billion compared with $2 billion at the end of December 2023.
In the first three months of 2024, Zebra Technologies generated net cash of $125 million in operating activities against $76 million cash used at the end of the year-ago period. The company incurred a capital expenditure of $14 million in the same time frame. Free cash inflow amounted to $111 million against free cash outflow of $92 million in the year-ago period.
Guidance
For the second quarter of 2024, Zebra Technologies, carrying a current Zacks Rank #3 (Hold) at present, expects net sales to decline 1-5% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adjusted EBITDA margin is anticipated to be slightly above 19% for the quarter. Adjusted earnings per share (EPS) are expected to be in the band of $2.60-$2.90.
For 2024, the company expects net sales to increase 1-5% from the prior-year level. Adjusted EPS is anticipated to be in the range of $11.25-$12.25 for the year. The effective tax rate is expected to be 17%. The adjusted EBITDA margin is anticipated to be almost 20%. ZBRA expects free cash flow to be at least $600 million for the year.
Performance of Other Industrial Companies
IDEX Corporation’s (IEX - Free Report) first-quarter 2024 adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. On a year-over-year basis, the bottom line decreased approximately 10.1%.
In the quarter, IDEX’s net sales of $800.5 million underperformed the consensus estimate of $805 million. The top line also decreased 5.3% year over year.
A. O. Smith Corporation’s (AOS - Free Report) first-quarter 2024 adjusted earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 99 cents. The bottom line increased 6% on a year-over-year basis.
Net sales of $978.8 million missed the consensus estimate of $995 million. However, the top line inched up 1% year over year, driven by strong demand for commercial water heaters in North America.
W.W. Grainger, Inc. (GWW - Free Report) has reported earnings per share of $9.62 in first-quarter 2024, beating the Zacks Consensus Estimate of $9.58. The bottom line improved 0.1% year over year.
Grainger’s quarterly revenues rose 3.5% year over year to $4.24 billion. The top line missed the consensus estimate of $4.27 billion.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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