Zebra Technologies Corp. · Q2 2022 earnings

Briefing

Reported solid second quarter results, executing well in a challenging macro environment.

Zebra Technologies announced second-quarter 2022 results with net sales of $1,468 million, a 6.6% year-over-year increase. The company reported a net loss of $98 million, or $(1.87) per diluted share, inclusive of $372 million in settlement costs. Non-GAAP diluted EPS increased 0.9% year-over-year to $4.61. Adjusted EBITDA decreased 1.2% year-over-year to $321 million.

• Net sales increased by 6.6% year-over-year to $1,468 million.
• Net loss of $98 million, or $1.87 loss per diluted share, including $372 million in settlement costs.
• Non-GAAP diluted EPS increased 0.9% year-over-year to $4.61.
• Adjusted EBITDA decreased 1.2% year-over-year to $321 million.

Headline financials

Revenue & EPS history

The company expects third quarter 2022 adjusted net sales to increase 2% to 4% compared to the third quarter of 2021. Adjusted EBITDA margin for the third quarter of 2022 is expected to be approximately 22%. Non-GAAP earnings per diluted share are expected to be in the range of $4.35 to $4.65. The Company is narrowing the range of its full year outlook for adjusted net sales growth to 4% to 6% from 2021. Adjusted EBITDA margin for the full year is expected to be approximately 22%. Free cash flow is now expected to be at least $650 million, inclusive of the anticipated $150 million of settlement and related payments.