NASDAQ$ZBRA

Zebra Technologies Corp. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Achieved record quarterly sales and earnings, exceeding expectations despite industry supply chain challenges.

Zebra Technologies reported a strong first quarter with net sales of $1,347 million, a 28% year-over-year increase. Net income increased by 156.2% to $228 million, and non-GAAP diluted EPS increased by 79.4% to $4.79. The company is raising its full-year 2021 outlook for both sales and profitability.

  • Net sales increased by 28.0% year-over-year to $1,347 million.
  • Net income rose by 156.2% year-over-year to $228 million.
  • Non-GAAP diluted EPS increased by 79.4% year-over-year to $4.79.
  • Adjusted EBITDA increased by 69.7% year-over-year to $341 million.

Headline financials

Total Revenue

$1.35B

Previous: $1.05B+28.0%
EPS (adj)

$4.79

Previous: $2.67+79.4%
Gross Margin

48.6%

Previous: 45.0%+8.0%
Adjusted EBITDA

$341M

Previous: $201M+69.7%
Adjusted EBITDA Margin

25.3%

Previous: 19.1%+32.5%
Net Income Margin

16.9%

Previous: 8.5%+98.8%
Capital Expenditures

-$10M

Previous: -$13M+23.1%
Free Cash Flow

$218M

Previous: $76M+186.8%
Net Income

$228M

Previous: $89M+156.2%
Operating Income

$272M

Previous: $151M+80.1%
Gross Profit

$655M

Previous: $473M+38.5%
Cash & Equivalents

$177M

Previous: $24M+637.5%
Total Assets

$5.41B

Previous: $4.54B+19.2%
Stock-Based Comp

$16M

Previous: $7M+128.6%

Revenue & EPS history

Zebra · Revenue · Quarterly

$1.35B

Q1 2021+28%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Zebra · $1.35B total across 2 segments · Q1 2021

  • Connected Frontline (CF)
    $914M+34.2%
  • Asset Visibility & Automation
    $436M+17.5%

Forward guidance

The company expects second-quarter 2021 adjusted net sales to increase 38% to 42% from the second quarter of 2020. Adjusted EBITDA margin for the second quarter of 2021 is expected to be in the range of 21% to 22%. Non-GAAP earnings per diluted share are expected to be in the range of $4.00 to $4.20.

Tailwinds

  • Adjusted net sales to increase 38% to 42% from the second quarter of 2020
  • Includes an approximately 450-500 basis point additive impact from the Reflexis acquisition and foreign currency translation
  • Adjusted EBITDA margin for the second quarter of 2021 is expected to be in the range of 21% to 22%
  • Non-GAAP earnings per diluted share are expected to be in the range of $4.00 to $4.20
  • Assumes an adjusted effective tax rate of approximately 18%

Headwinds

  • Expectation reflects industry supply chain challenges
  • Adjusted EBITDA margin includes approximately $18 million of premium freight expense
  • Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis
  • Inherent difficulty of forecasting the timing or amount of various items that have not yet occurred
  • Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.3%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.4%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+17.9%

Q4 2017

Best reaction

-21.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%+19.7%+0.5%
Q4 2025+8.6%+3.3%-19.7%
Q3 2025-11.7%-13.3%-19.3%
Q1 2025+5.2%+5.1%+20.1%
Q4 2024-8.4%-6.2%-21.0%
Q3 2024+5.6%+5.8%+11.6%
Q2 2024+4.8%-3.8%+2.1%
Q1 2024+3.0%+3.2%+5.5%
Q4 2023+8.9%+7.5%+13.0%
Q3 2023-5.6%+2.2%+13.0%
Q2 2023-21.7%-18.4%-10.7%
Q1 2023-10.1%-4.7%-7.4%
Q4 2022-1.4%-6.1%-11.7%
Q3 2022-16.7%-18.6%-5.1%
Q2 2022-8.9%-7.5%-13.6%
Q1 2022-3.1%-9.7%-8.6%
Q4 2021-12.7%-14.0%-23.7%
Q3 2021+6.6%+12.0%+10.0%
Q2 2021+1.6%+2.1%+6.8%
Q1 2021+0.7%+2.0%+5.6%
Q4 2020+11.8%+13.7%+10.6%
Q3 2020+12.3%+18.2%+27.1%
Q2 2020+0.2%+2.7%+1.4%
Q1 2020+10.9%+2.1%+16.5%
Q4 2019-5.2%-6.1%-27.0%
Q3 2019+7.2%+6.8%+14.5%
Q2 2019+11.3%+5.0%+10.1%
Q1 2019-9.6%-9.0%-25.2%
Q4 2018+8.6%+8.3%+14.9%
Q3 2018+7.3%+8.0%+2.7%
Q2 2018+10.7%+13.4%+17.5%
Q1 2018+8.8%+13.2%+15.0%
Q4 2017+17.9%+16.6%+13.3%
Q3 2017-7.9%-9.8%-7.0%
Q2 2017+6.8%+6.4%+3.6%
Q1 2017+2.3%+3.1%+11.7%
Q4 2016+8.4%+5.8%+1.2%
Q3 2016+9.2%+12.3%+27.5%
Q2 2016+11.8%+15.1%+17.6%
Q1 2016-17.8%
Q4 2015-15.0%
Q3 2015-9.3%
Q2 2015-20.4%
Q1 2015+15.5%
Q4 2014-3.5%
Q3 2014-1.1%
Q2 2014-8.1%
Q1 2014+3.5%
Q4 2013+15.3%
Q3 2013+6.3%
Q2 2013-1.3%
Q1 2013+0.3%
Q4 2012+3.5%
Q3 2012+3.5%
Q2 2012-2.0%
Q1 2012+0.7%
Q4 2011+1.9%
Q3 2011-1.5%
Q2 2011-11.6%
Q1 2010-1.0%
Q4 2010-1.0%
Q1 2011+0.1%
Q4 2008-0.3%
Q3 2010-1.1%
Q3 2009-1.1%
Q2 2009-0.0%
Q2 2010-0.0%
Q4 2009-0.0%

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