NASDAQ$ZBRA

Zebra Technologies Corp. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Second quarter results were impacted by softening demand and more cautious customer spending.

Zebra Technologies' second quarter results were impacted by softening demand and cautious customer spending, particularly in retail and logistics. However, profit margin was higher than expected, enabling the company to achieve its EPS outlook. The company is revising its outlook downward but remains confident in its ability to benefit from long-term trends.

  • Net sales decreased by 17.3% year-over-year to $1,214 million.
  • Net income was $144 million, with diluted EPS of $2.78.
  • Non-GAAP diluted EPS decreased year-over-year to $3.29.
  • Adjusted EBITDA decreased year-over-year to $257 million.

Headline financials

Total Revenue

$1.21B

Previous: $1.47B-17.3%
EPS (adj)

$3.29

Previous: $4.61-28.6%
Gross Margin

47.9%

Previous: 45.9%+4.4%
Adjusted EBITDA

$257M

Previous: $321M-19.9%
Adjusted EBITDA Margin

21.2%

Previous: 21.9%-3.2%
Net Income Margin

11.9%

Previous: -6.7%+277.6%
Capital Expenditures

-$34M

Previous: -$31M-9.7%
Free Cash Flow

$110M

Previous: -$129M+185.3%
Net Income

$144M

Previous: -$98M+246.9%
Operating Income

$194M

Previous: -$145M+233.8%
Gross Profit

$581M

Previous: $674M-13.8%
Cash & Equivalents

$68M

Previous: $98M-30.6%
Total Assets

$7.46B

Previous: $7.39B+1.0%
Stock-Based Comp

$2M

Previous: $25M-92.0%

Revenue & EPS history

Zebra · Revenue · Quarterly

$1.21B

Q2 2023-17.3%vs Q2 2022
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Revenue by segment

Zebra · $1.21B total across 2 segments · Q2 2023

  • Connected Frontline (CF)
    $755M-26.1%
  • Asset Visibility & Automation
    $459M+2.9%

Forward guidance

The Company expects third quarter 2023 net sales to decrease between 30% and 35% compared to the prior year. Adjusted EBITDA margin for the third quarter of 2023 is expected to be between 10% and 12%. Non-GAAP diluted earnings per share are expected to be in the range of $0.60 to $1.00.

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 Q2 2023

Historical avgQ2 2023

+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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