Zebra Technologies (NASDAQ:ZBRA) Issues Earnings Results

Zebra Technologies (NASDAQ:ZBRA) released its quarterly earnings results on Tuesday. The industrial products company reported $4.95 earnings per share for the quarter, beating the consensus estimate of $4.89 by $0.06, Briefing.com reports. The firm had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.57 billion. Zebra Technologies had a return on equity of 22.29% and a net margin of 9.22%. The company’s revenue was up 22.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.88 EPS.

Here are the key takeaways from Zebra Technologies’ conference call:

• Record Q3 performance: Sales exceeded $1.6 billion, up 22.3% year over year (11.3% organically), while non-GAAP EPS rose 28% to $4.95, surpassing company expectations on broad-based demand.
• Zebra raised its full-year outlook to approximately 17% sales growth and $21.20 in non-GAAP EPS, with fourth-quarter EPS guided to $5.00–$5.40 and free cash flow expected to reach at least $1 billion.
• Demand is particularly strong for mobile computing, transportation and logistics, healthcare, machine vision, and Elo Touch; management cited a robust multi-year pipeline of global transportation and logistics refresh projects beginning in 2027.
• The company reported progress securing memory supply, including five newly qualified suppliers and additional inventory, supporting its ability to meet mobile-computing demand into 2027; management expects 2027 growth at the high end of its 5%–7% long-term range.
• Memory costs increased by more than $50 million year over year in Q3 and are expected to create a $145 million full-year headwind, contributing to a 220-basis-point decline in adjusted gross margin; pricing actions and productivity savings are intended to fully offset the impact.

Zebra Technologies Price Performance

Shares of ZBRA traded down $34.34 during trading hours on Tuesday, reaching $326.80. 735,826 shares of the stock traded hands, compared to its average volume of 781,342. The company’s 50-day moving average price is $367.39 and its two-hundred day moving average price is $280.91. The company has a current ratio of 0.52, a quick ratio of 0.33 and a debt-to-equity ratio of 0.14. Zebra Technologies has a 52-week low of $199.05 and a 52-week high of $392.78. The company has a market cap of $15.57 billion, a P/E ratio of 30.25 and a beta of 1.61.

Insider Buying and Selling

In other Zebra Technologies news, insider Michael Cho sold 3,500 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $375.20, for a total transaction of $1,313,200.00. Following the completion of the transaction, the insider owned 5,170 shares in the company, valued at $1,939,784. This trade represents a 40.37% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Linda Connly sold 500 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $377.68, for a total transaction of $188,840.00. Following the transaction, the director owned 3,708 shares of the company’s stock, valued at $1,400,437.44. This trade represents a 11.88% decrease in their position. The SEC filing for this sale provides additional information. 0.91% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on ZBRA shares. Barclays raised their target price on Zebra Technologies from $410.00 to $416.00 and gave the stock an “overweight” rating in a research report on Monday, October 12th. KeyCorp increased their price objective on shares of Zebra Technologies from $305.00 to $430.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 5th. UBS Group reissued a “buy” rating on shares of Zebra Technologies in a report on Wednesday, August 5th. Weiss Ratings upgraded shares of Zebra Technologies from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, October 13th. Finally, Zacks Research cut shares of Zebra Technologies from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Nine equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $385.83.

About Zebra Technologies

Zebra Technologies Corp. (NASDAQ: ZBRA) develops technologies that help businesses identify, track and manage assets, inventory and operational processes. Its solutions are used by organizations in retail, manufacturing, transportation and logistics, healthcare, government and other industries to improve visibility and productivity across their operations.

The company’s portfolio includes barcode and label printers, barcode scanners, mobile computers, radio-frequency identification (RFID) readers and tags, machine-vision systems, fixed industrial scanners and related software.