NASDAQ$ZBRA

Zebra Technologies Corp. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Zebra Technologies' Q4 2019 results were announced, showcasing revenue growth and increased profitability.

Zebra Technologies reported a 4.8% increase in net sales, reaching $1,192 million, driven by growth in North America and EMEA, although partially offset by lower sales in Asia-Pacific. Net income increased by 47.0% to $169 million, with diluted EPS rising by 46.9% to $3.10. Adjusted EBITDA also saw a 6.3% increase, reaching $255 million.

  • Net sales increased by 4.8% year-over-year to $1,192 million.
  • Net income rose by 47.0% year-over-year to $169 million.
  • Non-GAAP diluted EPS increased by 14.8% year-over-year to $3.56.
  • Adjusted EBITDA increased by 6.3% year-over-year to $255 million.

Headline financials

Total Revenue

$1.19B

Previous: $1.14B+4.8%
EPS (adj)

$3.56

Previous: $3.10+14.8%
Gross Margin

45.6%

Previous: 47.4%-3.8%
Adjusted EBITDA

$255M

Previous: $240M+6.3%
Adjusted EBITDA Margin

21.4%

Previous: 21.1%+1.4%
Net Income Margin

14.2%

Previous: 10.1%+40.6%
Capital Expenditures

$17M

Previous: $16M+6.3%
Free Cash Flow

$624M

Previous: $309M+101.9%
Net Income

$169M

Previous: $115M+47.0%
Operating Income

$188M

Previous: $179M+5.0%
Gross Profit

$544M

Previous: $539M+0.9%
Cash & Equivalents

$30M

Previous: $44M-31.8%
Total Assets

$4.71B

Previous: $4.34B+8.6%
Stock-Based Comp

$12M

Previous: $11M+9.1%

Revenue & EPS history

Zebra · Revenue · Quarterly

$1.19B

Q4 2019+4.8%vs Q4 2018
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Zebra · $1.19B total across 2 segments · Q4 2019

  • Connected Frontline (CF)
    $813M+5.6%
  • Asset Visibility & Automation
    $379M+3.3%

Forward guidance

The company anticipates net sales for the first quarter of 2020 to increase by approximately 4% to 7% compared to the first quarter of 2019. The adjusted EBITDA margin is expected to be around 20%. For the full year 2020, net sales are projected to increase by approximately 4% to 6% from 2019, with an adjusted EBITDA margin slightly higher than 22%.

Tailwinds

  • First-quarter 2020 net sales are expected to increase approximately 4% to 7% year-over-year.
  • Acquisitions are expected to add approximately 1 percentage point to the net sales increase in the first quarter of 2020.
  • The adjusted EBITDA margin is expected to be approximately 20% for the first quarter of 2020.
  • Full-year 2020 net sales are expected to increase approximately 4% to 6% from 2019.
  • The adjusted EBITDA margin is expected to be slightly higher than 22% for the full-year 2020.

Headwinds

  • The outlook does not take into account the full potential impact of the coronavirus outbreak.
  • An approximate 1 percentage point negative impact from foreign currency translation is expected in the first quarter of 2020.
  • The adjusted EBITDA margin for the first quarter of 2020 includes approximately $10 million in net incremental cost of sales attributable to Section 301 List 4 tariffs.
  • The adjusted EBITDA margin for the first quarter of 2020 includes approximately $4 million of additional freight expense related to the coronavirus outbreak.
  • Diversifying sourcing of U.S. volumes out of China is expected to result in up to an additional $25 million of one-time pre-tax charges through mid-2020, plus an estimated $10-15 million of capital expenditures.

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 Q4 2019

Historical avgQ4 2019

+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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