- Zebra Technologies Corp ZBRA reported first-quarter FY20 revenue growth of 28% year-on-year to $1.347 billion, beating analyst consensus of $1.33 billion.
- Net sales in the Enterprise Visibility & Mobility (EVM) segment rose 31.1% to $914 million. Asset Intelligence & Tracking (AIT) segment net sales rose 22.8% to $436 million.
- Organic net sales rose 25%. EVM and AIT segment organic sales rose 26.8% and 21.4%, respectively.
- Non-GAAP gross margin expanded 370 basis points to 48.9% from favorable business mix, higher service and software margin, favorability in Chinese import tariffs, and contribution from higher-margin business acquisitions.
- Non-GAAP EPS of $4.79 beat the analyst consensus of $4.34.
- Adjusted EBITDA rose 69.7% to $341 million with a 620-basis points margin expansion at 25.3%.
- The company held $177 million in cash and equivalents of $177 million and generated $224 million in operating cash flow. Total debt amounted to $1.096 billion.
- The company entered Q2 with a strong order backlog with global business demand recovery and customers’ prioritizing spending on its solutions, stated CEO Anders Gustafsson. The momentum drove strong Q2 sales growth expectations along with encouraging pipeline of business, added Gustafsson.
- Guidance: Q2 adjusted net sales growth guidance lies between 38% to 42%. Non-GAAP EPS guidance lies between $4.00 to $4.20, ahead of the analyst consensus of $3.62.
- FY21 adjusted net sales growth outlook was raised from the previous range of 10% - 14% to 18% - 22%.
- Price action: ZBRA shares closed lower by 1.78% at $479.05 in the premarket session on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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