A month has gone by since the last earnings report for Zebra Technologies (ZBRA Quick QuoteZBRA - Free Report) . Shares have added about 5.7% 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 Top Estimates, Rise Y/Y

Zebra Technologies reported third-quarter 2024 adjusted earnings of $3.49 per share, which surpassed the Zacks Consensus Estimate of $3.24. The bottom line increased significantly from 87 cents reported in the year-ago quarter.

Total revenues of $1.26 billion surpassed the consensus estimate of $1.21 billion. The top line increased 31.3% year over year, driven by strength in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking units. Consolidated organic net sales increased 30.6% year over year. Foreign-currency translation had a positive impact of 0.7% on total revenues.

Segmental Performance

Revenues from the Asset Intelligence & Tracking segment rose 26.5% year over year to $410 million. The Zacks Consensus Estimate for segmental revenues was pegged at $391 million. Organic net sales increased 25.8%. Foreign-currency translation had a positive impact of 0.7% on segmental revenues.

The Enterprise Visibility & Mobility segment’s revenues totaled $845 million, up 33.7% year over year. The consensus estimate for segmental revenues was pegged at $819 million. Organic net sales increased 33%. Foreign-currency translation had a positive impact of 0.7%.

Margin Profile

In the third quarter, Zebra Technologies’ cost of sales totaled $642 million, up 21.4% year over year. Total operating expenses decreased 3.9% year over year to $422 million.

The company reported a net income of $137 million against a loss of $15 million in the year-ago period.

Balance Sheet and Cash Flow

Zebra Technologies had cash and cash equivalents of $676 million at the end of the third quarter compared with $137 million at the end of December 2023. Long-term debt totaled $2.08 billion compared with $2.05 billion at the end of December 2023.

In the first nine months of 2024, Zebra Technologies generated net cash of $707 million in operating activities against $145 million cash used in the year-ago period. The company incurred a capital expenditure of $41 million in the same time frame. Free cash inflow amounted to $665.9 million against free cash outflow of $193 million in the year-ago period.

Guidance

For the fourth quarter, Zebra Technologies expects net sales to increase in the band of 28-31% year over year. Foreign-currency translation is anticipated to have a favorable impact of 1%. 

Adjusted EBITDA margin is anticipated to be 22% in the fourth quarter. Adjusted earnings per share are expected to be in the band of $3.80-$4.00. The effective tax rate is expected to be 17%.

For 2024, it expects free cash flow to be at least $850 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 20.96% due to these changes.

VGM Scores

Currently, Zebra has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Zebra has a Zacks Rank #1 (Strong Buy). We expect an above 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 , has gained 8.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

JBT reported revenues of $453.8 million in the last reported quarter, representing a year-over-year change of +12.4%. EPS of $1.50 for the same period compares with $1.11 a year ago.

JBT is expected to post earnings of $1.83 per share for the current quarter, representing a year-over-year change of +30.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for JBT. Also, the stock has a VGM Score of B.