- Zebra Tech reported 2Q net sales of $1.29 billion, matching the market estimate.
- Net sales for tangible products rose to $1.06 billion, a 7.3% increase year-over-year, surpassing the estimate of $1.04 billion.
- Services and software net sales were $238 million, an increase of 1.7% from the previous year but below the estimated $245.7 million.
- Adjusted earnings per share (EPS) increased to $3.61, compared to $3.18 in the previous year, outperforming the estimate of $3.31.
- The adjusted gross margin was 47.9%, slightly down from last year’s 48.6%, yet above the estimated 47.4%.
- Adjusted EBITDA was $267 million, reflecting a 6.8% year-over-year growth, higher than the estimated $248.6 million.
- The adjusted EBITDA margin increased to 20.6% from 20.5% the previous year, beating the estimated 19.2%.
- Research and development expenses decreased by 1.4% year-over-year to $144 million, under the projected $148.5 million.
- The company anticipates third-quarter sales growth to range between 2% and 6% compared to the previous year.
- Analysts’ current ratings include 10 buys, 8 holds, and no sells.
Zebra Technologies Corp on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely following Zebra Technologies Corp and sharing insights on the company’s performance. In their report titled “Zebra Technologies: A Tale Of Diversification and Market Expansion in Manufacturing!“, Baptista Research highlights Zebra’s strong first-quarter financial results, surpassing guidance. With sales exceeding $1.3 billion and a 12% year-over-year increase, Zebra also saw improvements in adjusted EBITDA margin and non-GAAP earnings per share, showing a 42% rise.
In another report, “Zebra Technologies: How Is It Benefitting from the Recent Health Care Sector Growth?“, Baptista Research discusses Zebra’s robust fourth-quarter and full-year 2024 results. Notably, the company experienced a 32% year-over-year sales increase in the fourth quarter, driven by a rebound in demand across key verticals. Though showing areas of caution and strategic focus for 2025, Zebra Technologies demonstrated strong performance, especially in the North American retail sector, leading to better-than-expected year-end spending.
A look at Zebra Technologies Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Zebra Technologies Corp is positioned for a promising long-term outlook. With a high Momentum score of 5, the company shows strong potential for growth and market appreciation. Additionally, Zebra Technologies Corp scores well on Growth and Resilience, with scores of 3 for both factors, indicating a solid foundation for future expansion and the ability to withstand market challenges. While the Value score comes in at 2 and the Dividend score at 1, the overall outlook remains positive for Zebra Technologies Corp.
Zebra Technologies Corporation is a leading enterprise in the design and production of various technology solutions, from mobile computers to advanced data capture devices and specialty printers. With a diverse portfolio that includes WLAN products and real-time location systems, Zebra Technologies Corp continues to innovate in the field of barcode labeling and personal identification. The combination of its innovative product offerings and strong Smartkarma Smart Scores suggests a bright future ahead for Zebra Technologies Corp in the tech industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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