NASDAQ$ZBRA

Zebra Technologies Corp. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Zebra Technologies' third quarter performance reflected excellent execution, continuing recovery in demand, strong gross margin, and the completion of restructuring actions, enabling sales and earnings results above the high end of its outlook.

Zebra Technologies reported a strong third quarter in 2024, with net sales of $1,255 million, a 31.3% year-over-year increase. Net income was $137 million, or $2.64 per diluted share, and non-GAAP diluted EPS increased to $3.49. Adjusted EBITDA increased to $268 million. The company completed exit and restructuring actions, driving $120 million in annualized net expense savings.

  • Net sales increased by 31.3% year-over-year to $1,255 million.
  • Net income reached $137 million, with earnings per diluted share at $2.64.
  • Non-GAAP diluted EPS rose to $3.49.
  • Adjusted EBITDA increased to $268 million.

Headline financials

Total Revenue

$1.26B

Previous: $956M+31.3%
EPS (adj)

$3.49

Previous: $0.87+301.1%
Capital Expenditures

-$41M

Previous: -$48M+14.6%
Free Cash Flow

$96M

Previous: -$63M+252.4%
Net Income

$137M

Previous: -$15M+1013.3%
Operating Income

$191M

Previous: -$12M+1691.7%
Gross Profit

$613M

Previous: $427M+43.6%
Cash & Equivalents

$676M

Previous: $61M+1008.2%
Total Assets

$7.69B

Previous: $7.33B+4.9%
R&D Expense

$141M

Previous: $127M+11.0%
Stock-Based Comp

$20M

Previous: $19M+5.3%

Revenue & EPS history

Zebra · Revenue · Quarterly

$1.26B

Q3 2024+31.3%vs Q3 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 fourth quarter sales growth between 28% and 31% compared to the prior year. Fourth quarter Adjusted EBITDA margin is expected to be approximately 22%. Non-GAAP diluted earnings per share are expected to be in the range of $3.80 to $4.00. Free cash flow for the full year is expected to be at least $850 million.

Tailwinds

  • Fourth quarter sales growth between 28% and 31% compared to the prior year.
  • Foreign currency translation is expected to have approximately a 1 percentage point favorable impact.
  • Fourth quarter Adjusted EBITDA margin is expected to be approximately 22%.
  • Non-GAAP diluted earnings per share are expected to be in the range of $3.80 to $4.00.
  • Free cash flow for the full year is expected to be at least $850 million.

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 2024

Historical avgQ3 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%

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