NASDAQ$ZBRA

Zebra Technologies Corp. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Announced first-quarter results, impacted by broad-based softness across end markets but realized improvement in demand from the fourth quarter of 2023. The company executed well, driving significant sequential improvement in profitability due to cost restructuring actions and improved gross margin.

Zebra Technologies reported Q1 2024 net sales of $1,175 million, a 16.4% year-over-year decrease. Net income was $115 million, or $2.23 per diluted share. Adjusted EBITDA decreased to $234 million. The company is on track with $120 million annualized net expense savings from Exit and Restructuring plans.

  • Net sales of $1,175 million, a 16.4% year-over-year decrease.
  • Net income of $115 million and net income per diluted share of $2.23.
  • Non-GAAP diluted EPS decreased year-over-year to $2.84.
  • Adjusted EBITDA decreased year-over-year to $234 million.

Headline financials

Total Revenue

$1.18B

Previous: $1.41B-16.4%
EPS

$2.23

Previous: $3.94-43.4%
Gross Margin

47.9%

Previous: 47.5%+0.8%
Adjusted EBITDA

$234M

Previous: $301M-22.3%
Net Income Margin

9.8%

Previous: 10.7%-8.4%
Capital Expenditures

-$14M

Previous: -$16M+12.5%
Free Cash Flow

$101M

Previous: $134M-24.6%
Net Income

$115M

Previous: $150M-23.3%
Operating Income

$159M

Previous: $225M-29.3%
Gross Profit

$563M

Previous: $667M-15.6%
Cash & Equivalents

$127M

Previous: $85M+49.4%
Total Assets

$7.26B

Previous: $7.47B-2.9%
R&D Expense

$138M

No prior period
Stock-Based Comp

$17M

Previous: $18M-5.6%

Revenue & EPS history

Zebra · Revenue · Quarterly

$1.18B

Q1 2024-16.4%vs Q1 2023
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Revenue by segment

Zebra · $956M total across 2 segments · Q3 2023

  • Connected Frontline (CF)
    $632M-34.4%
  • Asset Visibility & Automation
    $324M-21.9%

Forward guidance

The Company expects second quarter 2024 net sales to decrease between 1% and 5% compared to the prior year. Adjusted EBITDA margin for the second quarter of 2024 is expected to be slightly above 19%. Non-GAAP diluted earnings per share are expected to be in the range of $2.60 to $2.90. The Company expects full year 2024 net sales growth between 1% and 5% compared to the prior year. Adjusted EBITDA margin for the full year 2024 is expected to be approximately 20%. Non-GAAP diluted earnings per share are expected to be in the range of $11.25 to $12.25.

Tailwinds

  • Second quarter 2024 net sales to decrease between 1% and 5% compared to the prior year.
  • Foreign currency translation is expected to have an approximately 50 basis point favorable impact.
  • Adjusted EBITDA margin for the second quarter of 2024 is expected to be slightly above 19%.
  • Non-GAAP diluted earnings per share are expected to be in the range of $2.60 to $2.90.
  • Free cash flow is expected to be at least $600 million.

Headwinds

  • Full year 2024 net sales growth between 1% and 5% compared to the prior year.
  • Adjusted EBITDA margin for the full year 2024 is expected to be approximately 20%.
  • Non-GAAP diluted earnings per share are expected to be in the range of $11.25 to $12.25.
  • Assumes an adjusted effective tax rate of approximately 17%.
  • Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.

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 2024

Historical avgQ1 2024

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro