NASDAQ$ZBRA

Zebra Technologies Corp. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Zebra Technologies' first quarter results announced, demonstrating solid performance in a challenging macro environment.

Zebra Technologies reported a 6.3% year-over-year increase in net sales, reaching $1,432 million. Net income decreased by 10.1% to $205 million, with diluted EPS decreasing by 9.2% to $3.83. The company reiterated its full-year 2022 sales outlook but lowered its adjusted EBITDA margin guidance due to increased supply chain costs.

  • Net sales increased by 6.3% year-over-year to $1,432 million.
  • Net income decreased by 10.1% year-over-year to $205 million.
  • Non-GAAP diluted EPS decreased by 16.3% year-over-year to $4.01.
  • Adjusted EBITDA decreased by 16.4% year-over-year to $285 million.

Headline financials

Total Revenue

$1.43B

Previous: $1.35B+6.3%
EPS (adj)

$4.01

Previous: $4.79-16.3%
Gross Margin

44.5%

Previous: 48.6%-8.4%
Adjusted EBITDA

$285M

Previous: $341M-16.4%
Adjusted EBITDA Margin

19.9%

Previous: 25.3%-21.3%
Net Income Margin

14.3%

Previous: 16.9%-15.4%
Capital Expenditures

-$14M

Previous: -$10M-40.0%
Free Cash Flow

$191M

Previous: $218M-12.4%
Net Income

$205M

Previous: $228M-10.1%
Operating Income

$212M

Previous: $272M-22.1%
Gross Profit

$637M

Previous: $655M-2.7%
Cash & Equivalents

$141M

Previous: $177M-20.3%
Total Assets

$6.13B

Previous: $5.41B+13.3%
Stock-Based Comp

$17M

Previous: $16M+6.3%

Revenue & EPS history

Zebra · Revenue · Quarterly

$1.43B

Q1 2022+6.3%vs Q1 2021
Beat estimate in 12 of 13 quarters(92%)
ActualEstimate

Revenue by segment

Zebra · $1.43B total across 2 segments · Q1 2022

  • Connected Frontline (CF)
    $1.04B+13.6%
  • Asset Visibility & Automation
    $394M-9.6%

Forward guidance

The company expects second quarter 2022 adjusted net sales to increase 3% to 7% compared to the second quarter of 2021. Adjusted EBITDA margin for the second quarter of 2022 is expected to be approximately 20% to 21%. Non-GAAP earnings per diluted share are expected to be in the range of $4.05 to $4.35.

Tailwinds

  • Expects second quarter 2022 adjusted net sales to increase 3% to 7% compared to the second quarter of 2021
  • Adjusted EBITDA margin for the second quarter of 2022 is expected to be approximately 20% to 21%.
  • Non-GAAP earnings per diluted share are expected to be in the range of $4.05 to $4.35.
  • The Company continues to expect adjusted net sales to increase 3% to 7% from 2021
  • Free cash flow is now expected to be at least $800 million.

Headwinds

  • Assumes a net neutral impact from acquisitions and foreign currency translation.
  • Adjusted EBITDA margin includes approximately $60 million of premium supply chain costs.
  • Adjusted EBITDA margin is now expected to be approximately 22% to 23%.
  • Assumes approximately $200 million impact from premium supply chain costs.
  • The outlook amounts provided above do not include any projected results from the acquisition of Matrox Imaging.

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 2022

Historical avgQ1 2022

+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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