NASDAQ$ZBRA

Zebra Technologies Corp. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced fourth-quarter and full-year 2021 results, demonstrating solid performance despite supply chain challenges.

Zebra Technologies reported a 12.2% increase in net sales for Q4 2021, reaching $1,467 million. Net income decreased by 4.0% to $191 million, while adjusted EBITDA increased by 3.6% to $319 million. The company anticipates continued growth in 2022, driven by a strong order backlog and pipeline.

  • Net sales increased by 12.2% year-over-year to $1,467 million.
  • Net income decreased by 4.0% year-over-year to $191 million.
  • Non-GAAP diluted EPS increased by 1.8% year-over-year to $4.54.
  • Adjusted EBITDA increased by 3.6% year-over-year to $319 million.

Headline financials

Total Revenue

$1.47B

Previous: $1.31B+12.2%
EPS (adj)

$4.54

Previous: $4.46+1.8%
Gross Margin

45.6%

Previous: 47.2%-3.4%
Adjusted EBITDA

$319M

Previous: $308M+3.6%
Adjusted EBITDA Margin

21.7%

Previous: 23.5%-7.7%
Net Income Margin

13.0%

Previous: 15.2%-14.5%
Capital Expenditures

$21M

Previous: $18M+16.7%
Free Cash Flow

$1.01B

Previous: $895M+12.8%
Net Income

$191M

Previous: $199M-4.0%
Operating Income

$223M

Previous: $231M-3.5%
Gross Profit

$669M

Previous: $618M+8.3%
Cash & Equivalents

$332M

Previous: $168M+97.6%
Total Assets

$6.22B

Previous: $5.38B+15.6%
Stock-Based Comp

$18M

Previous: $18M+0.0%

Revenue & EPS history

Zebra · Revenue · Quarterly

$1.47B

Q4 2021+12.2%vs Q4 2020
Beat estimate in 12 of 13 quarters(92%)
ActualEstimate

Revenue by segment

Zebra · $1.47B total across 2 segments · Q4 2021

  • Connected Frontline (CF)
    $1.02B+16.4%
  • Asset Visibility & Automation
    $444M+2.3%

Forward guidance

The company expects adjusted net sales to increase 1% to 3% compared to the first quarter of 2021. Adjusted EBITDA margin is expected to be approximately 20%. Non-GAAP earnings per diluted share are expected to be in the range of $3.70 to $4.00.

Tailwinds

  • Adjusted net sales are expected to increase 1% to 3% compared to Q1 2021.
  • Acquisitions and foreign currency translation are expected to have an additive impact of approximately 1 percentage point on adjusted net sales.
  • Adjusted EBITDA margin is expected to be approximately 20%.
  • Non-GAAP earnings per diluted share are expected to be in the range of $3.70 to $4.00.
  • Assumes an adjusted effective tax rate of approximately 18%.

Headwinds

  • Includes approximately $60 million of premium freight expense.
  • Supply chain constraints may continue to impact ability to fully satisfy customer demand.
  • Unspecified risks associated with acquisitions and foreign currency translation.
  • The inherent difficulty of forecasting the timing or amount of various items that have not yet occurred.
  • Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

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 2021

Historical avgQ4 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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