NASDAQ$ZBRA

Zebra Technologies Corp. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Zebra Technologies reported exceptional third-quarter results, exceeding expectations due to broad-based demand and effective mitigation of supply chain disruption.

Zebra Technologies announced strong third-quarter results with a 26.9% year-over-year increase in net sales, reaching $1,436 million. Net income also saw a significant rise of 71.6% to $199 million, with adjusted EBITDA increasing by 35.7% to $312 million.

  • Net sales increased by 26.9% year-over-year to $1,436 million.
  • Net income rose by 71.6% year-over-year to $199 million.
  • Non-GAAP diluted EPS increased by 39.1% year-over-year to $4.55.
  • Adjusted EBITDA increased by 35.7% year-over-year to $312 million.

Headline financials

Total Revenue

$1.44B

Previous: $1.13B+26.9%
EPS (adj)

$4.55

Previous: $3.27+39.1%
Gross Margin

45.0%

Previous: 43.6%+3.2%
Adjusted EBITDA

$312M

Previous: $230M+35.7%
Adjusted EBITDA Margin

21.7%

Previous: 20.3%+6.9%
Net Income Margin

13.9%

Previous: 10.2%+36.3%
Capital Expenditures

-$38M

Previous: -$49M+22.4%
Free Cash Flow

$161M

Previous: $67M+140.3%
Net Income

$199M

Previous: $116M+71.6%
Operating Income

$237M

Previous: $150M+58.0%
Gross Profit

$646M

Previous: $493M+31.0%
Cash & Equivalents

$307M

Previous: $39M+687.2%
Total Assets

$5.87B

Previous: $5.25B+11.8%
Stock-Based Comp

$20M

Previous: $13M+53.8%

Revenue & EPS history

Zebra · Revenue · Quarterly

$1.44B

Q3 2021+26.9%vs Q3 2020
Beat estimate in 13 of 14 quarters(93%)
ActualEstimate

Revenue by segment

Zebra · $1.44B total across 2 segments · Q3 2021

  • Connected Frontline (CF)
    $1.05B+33.2%
  • Asset Visibility & Automation
    $386M+11.6%

Forward guidance

The company expects fourth quarter 2021 adjusted net sales to increase 8% to 12% from the fourth quarter of 2020. Adjusted EBITDA margin for the fourth quarter of 2021 is expected to be slightly higher than 21%. Non-GAAP earnings per diluted share are expected to be in the range of $4.20 to $4.50. For the full-year 2021, free cash flow is now expected to be at least $950 million.

Tailwinds

  • Strong broad-based demand for solutions.
  • Expected increase in adjusted net sales by 8% to 12%.
  • Approximately 2 percentage point additive impact from foreign currency translation.
  • Adjusted EBITDA margin expected to be slightly higher than 21%.
  • Full-year 2021 free cash flow expected to be at least $950 million.

Headwinds

  • Industry-wide supply chain challenges.
  • Includes approximately $55 million of premium freight expense.
  • Uncertainty over future global economic conditions.
  • Availability of credit and capital markets volatility may have adverse effects.
  • Potential disruption in ability to obtain products from vendors.

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 Q3 2021

Historical avgQ3 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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