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Zebra Technologies Corporation (ZBRA - Free Report) reported fourth-quarter 2022 adjusted earnings (excluding 32 cents from non-recurring items) of $4.43 per share, beating the Zacks Consensus Estimate of $4.13. The bottom line increased 5.2% year over year.
Total revenues of $1,503 million beat the Zacks Consensus Estimate of $1,452 million. The top line increased 2.5% year over year. Consolidated organic net sales decreased 3.9% year over year. Acquisitions contributed 1.9% to the top line, while foreign-currency translation had an adverse impact of 3.3% on sales.
Segmental Performance
Revenues from the Asset Intelligence & Tracking segment were $481 million, up 10.3% year over year. Organic net sales increased 13.5% in the AIT segment. Foreign-currency translation hurt segmental revenues by 3.2%.
The Enterprise Visibility & Mobility segment’s revenues were $1,022 million, down 0.9% year over year. Organic net sales declined 0.2%. Acquisitions contributed 2.6% to segmental revenues, while foreign-currency translations hurt revenues by 3.3%.
Zebra Technologies Corporation Price, Consensus and EPS Surprise
In the fourth quarter, Zebra Technologies’ cost of sales totaled $818 million, up 2.5% year over year. Total operating expenses were $425 million, down 4.7% year over year.
ZBRA reported a net income of $187 million in the fourth quarter, reflecting a decrease of 2.6%.
Balance Sheet and Cash Flow
Exiting the fourth quarter, Zebra Technologies had cash and cash equivalents of $105 million compared with $332 million at the end of December 2021. Long-term debt was $1,809 million compared with $922 million at the end of December 2021.
In 2022, Zebra Technologies generated net cash of $488 million from operating activities compared with $1069 million at the end of the year-ago period. In 2022, the company incurred capital expenditures of $75 million, while free cash flow was $413 million. During the same period, the company repurchased shares worth $751 million.
2023 Outlook
Zebra Technologies expects first-quarter 2023 adjusted net sales to decrease 1%-4%. The company expects a 1.5 percentage-point positive impact from acquired assets and an approximate 3 percentage-point adversity from foreign-currency translation.
Zebra Technologies expects an adjusted EBITDA margin of 21% for the first quarter. The company anticipates an adjusted effective tax rate of approximately 19% for the ongoing quarter. Adjusted earnings are predicted to be in the band of $3.70-$4.00. Adjusted EBITDA margin is expected to be approximately 21%, which includes approximately $20 million of premium supply chain expense.
For 2023, the company expects adjusted net sales to be down 3% to up 1%. The company expects a 0.5 percentage-point positive impact from acquired assets and an approximate 1 percentage-point adversity from foreign-currency translation.
ZBRA expects an adjusted EBITDA margin between 22% and 23%, which includes approximately $50 million of premium supply chain expense. Free cash flow is expected to be $650 million, inclusive of the anticipated $180 million of previously announced settlement payments.
Zacks Rank & Stocks to Consider
ZBRA currently has a Zacks Rank #4 (Sell). Some top-ranked companies from the Industrial Products sector are discussed below:
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Zebra Technologies (ZBRA) Q4 Earnings Beat, Revenues Rise Y/Y
Zebra Technologies Corporation (ZBRA - Free Report) reported fourth-quarter 2022 adjusted earnings (excluding 32 cents from non-recurring items) of $4.43 per share, beating the Zacks Consensus Estimate of $4.13. The bottom line increased 5.2% year over year.
Total revenues of $1,503 million beat the Zacks Consensus Estimate of $1,452 million. The top line increased 2.5% year over year. Consolidated organic net sales decreased 3.9% year over year. Acquisitions contributed 1.9% to the top line, while foreign-currency translation had an adverse impact of 3.3% on sales.
Segmental Performance
Revenues from the Asset Intelligence & Tracking segment were $481 million, up 10.3% year over year. Organic net sales increased 13.5% in the AIT segment. Foreign-currency translation hurt segmental revenues by 3.2%.
The Enterprise Visibility & Mobility segment’s revenues were $1,022 million, down 0.9% year over year. Organic net sales declined 0.2%. Acquisitions contributed 2.6% to segmental revenues, while foreign-currency translations hurt revenues by 3.3%.
Zebra Technologies Corporation Price, Consensus and EPS Surprise
Zebra Technologies Corporation price-consensus-eps-surprise-chart | Zebra Technologies Corporation Quote
Margin Profile
In the fourth quarter, Zebra Technologies’ cost of sales totaled $818 million, up 2.5% year over year. Total operating expenses were $425 million, down 4.7% year over year.
ZBRA reported a net income of $187 million in the fourth quarter, reflecting a decrease of 2.6%.
Balance Sheet and Cash Flow
Exiting the fourth quarter, Zebra Technologies had cash and cash equivalents of $105 million compared with $332 million at the end of December 2021. Long-term debt was $1,809 million compared with $922 million at the end of December 2021.
In 2022, Zebra Technologies generated net cash of $488 million from operating activities compared with $1069 million at the end of the year-ago period. In 2022, the company incurred capital expenditures of $75 million, while free cash flow was $413 million. During the same period, the company repurchased shares worth $751 million.
2023 Outlook
Zebra Technologies expects first-quarter 2023 adjusted net sales to decrease 1%-4%. The company expects a 1.5 percentage-point positive impact from acquired assets and an approximate 3 percentage-point adversity from foreign-currency translation.
Zebra Technologies expects an adjusted EBITDA margin of 21% for the first quarter. The company anticipates an adjusted effective tax rate of approximately 19% for the ongoing quarter. Adjusted earnings are predicted to be in the band of $3.70-$4.00. Adjusted EBITDA margin is expected to be approximately 21%, which includes approximately $20 million of premium supply chain expense.
For 2023, the company expects adjusted net sales to be down 3% to up 1%. The company expects a 0.5 percentage-point positive impact from acquired assets and an approximate 1 percentage-point adversity from foreign-currency translation.
ZBRA expects an adjusted EBITDA margin between 22% and 23%, which includes approximately $50 million of premium supply chain expense. Free cash flow is expected to be $650 million, inclusive of the anticipated $180 million of previously announced settlement payments.
Zacks Rank & Stocks to Consider
ZBRA currently has a Zacks Rank #4 (Sell). Some top-ranked companies from the Industrial Products sector are discussed below:
Allegion plc (ALLE - Free Report) presently carries a Zacks Rank #2 (Buy). ALLE’s earnings surprise in the last four quarters was 8.8%, on average. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks.
In the past 60 days, Allegion’s earnings estimates have remained steady for 2022. The stock has gained 12% in the past six months.
A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 3.2%, on average.
AOS’ earnings estimates have increased 4.1% for 2023 in the past 60 days. Shares of A. O. Smith have risen 6% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank of 2. VMI’s earnings surprise in the last four quarters was 12.5%, on average.
In the past 60 days, Valmont’s earnings estimates have increased by a penny. The stock has rallied 12.5% in the past six months.