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Zebra Technologies Corporation (ZBRA - Free Report) recently announced that it has acquired Matrox Imaging for $875 million. The acquisition was financed through the combination of the company’s cash on hand and its credit facility.
Zebra’s shares inched up 0.2% yesterday to eventually close the trading session at $335.43.
Headquartered in Montreal, Canada, Matrox is engaged in developing and providing hardware and software products used in machine vision applications. The company offers several products, including 3D sensors, smart cameras, vision controllers, input/output cards and frame grabbers. It has a strong presence across the United States, the U.K., Ireland, Germany and Hong Kong, with sales representatives across 25 countries.
Acquisition Rationale
The acquisition will enhance Zebra’s portfolio of machine vision product and solution offerings, which empower users with operational visibility and provide important business and market insights. This will also augment Zebra’s expertise in software, machine learning and deep learning.
The buyout will enable the company to combine its fixed industrial scanning and machine vision portfolio with Matrox’s expertise in the imaging market. This will allow ZBRA to provide its customers with a comprehensive line of automation and vision technology solutions.
Other Inorganic Moves
Zebra focuses on strengthening and expanding its business through the addition of assets. In October 2021, the company acquired antuit.ai, which complemented its retail software portfolio's planning and demand forecasting module. Also, it acquired Fetch Robotics in August 2021, which has been enabling it to offer a comprehensive line of advanced robotics solutions to customers.
Zacks Rank, Price Performance and Estimate Revisions
Zebra, with approximately $17.6 billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company has been experiencing weakness in its printing end market, supply-chain challenges and a rising cost of sales and operating expenses. However, it is likely to gain from its acquired assets and strong cash flows in the quarters ahead.
Image Source: Zacks Investment Research
In the past three months, the company’s share price has decreased 12.6% compared with the industry’s decline of 8.5%.
The Zacks Consensus Estimate for Zebra’s earnings is pegged at $18.97 for 2022, down 0.3% from the 30-day-ago figure. The consensus estimate for 2023 earnings is pegged at $21.50, down 1% over the same time frame.
Stocks to Consider
Some better-ranked companies from the industrial products sector are discussed below:
AIT’s earnings estimates have been stable for fiscal 2022 (ending June 2022) in the past 30 days. Its shares have rallied 5.8% in the past three months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 30 days, ROP’s earnings estimates have increased 0.1% for 2022. The stock has dipped 3% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 30 days, the stock’s earnings estimates have increased 1.9% for 2022. The stock has gained 6.5% in the past three months.
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Zebra (ZBRA) Buys Matrox Imaging, Boosts Product Offerings
Zebra Technologies Corporation (ZBRA - Free Report) recently announced that it has acquired Matrox Imaging for $875 million. The acquisition was financed through the combination of the company’s cash on hand and its credit facility.
Zebra’s shares inched up 0.2% yesterday to eventually close the trading session at $335.43.
Headquartered in Montreal, Canada, Matrox is engaged in developing and providing hardware and software products used in machine vision applications. The company offers several products, including 3D sensors, smart cameras, vision controllers, input/output cards and frame grabbers. It has a strong presence across the United States, the U.K., Ireland, Germany and Hong Kong, with sales representatives across 25 countries.
Acquisition Rationale
The acquisition will enhance Zebra’s portfolio of machine vision product and solution offerings, which empower users with operational visibility and provide important business and market insights. This will also augment Zebra’s expertise in software, machine learning and deep learning.
The buyout will enable the company to combine its fixed industrial scanning and machine vision portfolio with Matrox’s expertise in the imaging market. This will allow ZBRA to provide its customers with a comprehensive line of automation and vision technology solutions.
Other Inorganic Moves
Zebra focuses on strengthening and expanding its business through the addition of assets. In October 2021, the company acquired antuit.ai, which complemented its retail software portfolio's planning and demand forecasting module. Also, it acquired Fetch Robotics in August 2021, which has been enabling it to offer a comprehensive line of advanced robotics solutions to customers.
Zacks Rank, Price Performance and Estimate Revisions
Zebra, with approximately $17.6 billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company has been experiencing weakness in its printing end market, supply-chain challenges and a rising cost of sales and operating expenses. However, it is likely to gain from its acquired assets and strong cash flows in the quarters ahead.
Image Source: Zacks Investment Research
In the past three months, the company’s share price has decreased 12.6% compared with the industry’s decline of 8.5%.
The Zacks Consensus Estimate for Zebra’s earnings is pegged at $18.97 for 2022, down 0.3% from the 30-day-ago figure. The consensus estimate for 2023 earnings is pegged at $21.50, down 1% over the same time frame.
Stocks to Consider
Some better-ranked companies from the industrial products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1 (Strong Buy). AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIT’s earnings estimates have been stable for fiscal 2022 (ending June 2022) in the past 30 days. Its shares have rallied 5.8% in the past three months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 30 days, ROP’s earnings estimates have increased 0.1% for 2022. The stock has dipped 3% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 30 days, the stock’s earnings estimates have increased 1.9% for 2022. The stock has gained 6.5% in the past three months.