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Zebra Technologies Corporation (ZBRA - Free Report) 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%.
Zebra Technologies Corporation Price, Consensus and EPS Surprise
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. The Zacks Consensus Estimate for the same stands at $5.06. Free cash flow is expected to be at least $400 million for the fourth quarter.
Zacks Rank & Key Picks
Zebra Technologies currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Enerpac Tool has an estimated earnings growth rate of 44.6% for the current fiscal year. The company’s shares rallied 25% in the past six months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2 (Buy). IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
iRobot has an estimated earnings growth rate of 36.6% for the current year. The stock has gained 6.8% in the past six months.
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Zebra Technologies (ZBRA) Q3 Earnings Miss, Revenues Dip Y/Y
Zebra Technologies Corporation (ZBRA - Free Report) 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%.
Zebra Technologies Corporation Price, Consensus and EPS Surprise
Zebra Technologies Corporation price-consensus-eps-surprise-chart | Zebra Technologies Corporation Quote
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. The Zacks Consensus Estimate for the same stands at $5.06. Free cash flow is expected to be at least $400 million for the fourth quarter.
Zacks Rank & Key Picks
Zebra Technologies currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Enerpac Tool Group Corp. (EPAC - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company delivered a four-quarter earnings surprise of 3.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
Enerpac Tool has an estimated earnings growth rate of 44.6% for the current fiscal year. The company’s shares rallied 25% in the past six months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2 (Buy). IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
iRobot has an estimated earnings growth rate of 36.6% for the current year. The stock has gained 6.8% in the past six months.