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, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.85%.

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Zebra Technologies Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.79% to $0.5 in the quarter versus EPS of $0.58 in the year-earlier quarter.

Revenue: Decreased 2.86% to $236.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Zebra Technologies Corp. reported adjusted EPS income of $0.5 per share. By that measure, the company missed the mean analyst estimate of $0.63. It missed the average revenue estimate of $249.08 million.

Quoting Management: “Entering the first quarter, we expected growth in North America for the full quarter to offset the anticipated decline in Europe. However, a slowdown in our North American business during the first half of the period caused some of our distribution channel partners to meaningfully reduce inventories,” stated Anders Gustafsson, Zebra’s chief executive officer. “During the quarter, our international operations performed largely as expected. Business activity in all regions has now increased, and the pipeline of opportunities has improved. We also made progress on developing new, incremental revenue streams with solutions such as mobile point-of-sale, location solutions and RFID that are emerging with important technology trends. We remain confident in Zebra’s continued ability to invest in those areas that deliver the highest risk-adjusted returns and increasing shareholder value.”

Key Stats (on next page)…

Revenue decreased 6.43% from $253.18 million in the previous quarter. EPS decreased 26.47% from $0.68 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 $0.66 to a profit $0.68. For the current year, the average estimate has moved up from a profit of $2.75 to a profit of $2.81 over the last ninety days.

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