Zebra Technologies Earnings: Here’s Why Investors are Not Happy Now

Zebra Technologies Corp. (NASDAQ:ZBRA) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.62%.

Zebra Technologies Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.62% to $0.63 in the quarter versus EPS of $0.58 in the year-earlier quarter.

Revenue: Rose 2.48% to $253.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Zebra Technologies Corp. reported adjusted EPS income of $0.63 per share. By that measure, the company missed the mean analyst estimate of $0.64. It beat the average revenue estimate of $251 million.

Quoting Management: “In a quarter still challenged by uneven global business conditions, we won more business with strategic customers in targeted industries and delivered a broader range of products and solutions to a more diversified customer base,” stated Anders Gustafsson, Zebra’s chief executive officer. “During the quarter, the cadence of our product development activities remained high, with the recent introductions of our ZXP Series 1 and updated ZXP Series 3 card printers, and our EM220 II wireless mobile receipt printer. We also accelerated investments to introduce innovative Internet of Things products and solutions to serve customers in sports and entertainment. Our recently launched Zebra Commerce™ brand will help us to more effectively deliver the broad suite of Zebra products and services to customers in the retail and field service industries. We look to the second half of 2013 with optimism about making further progress on our strategic initiatives and building greater value for our shareholders.”

Key Stats (on next page)…

Revenue increased 6.86% from $236.94 million in the previous quarter. EPS increased 26% from $0.50 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.73 to a profit $0.74. For the current year, the average estimate has moved down from a profit of $2.60 to a profit of $2.56 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)