Zebra Technologies Slashes FY23 Outlook To Reflect Macro Headwinds, Updates On Cost Actions

Zebra Technologies Corp ZBRA reported a first-quarter FY23 net sales decline of 1.9% year-on-year to $1.405 billion, beating the consensus of $1.400 billion. Consolidated organic net sales for the quarter decreased by 0.3%.
Net sales in the Enterprise Visibility & Mobility (EVM) segment fell 11.9% Y/Y to $914 million. The net sales of the asset Intelligence & Tracking (AIT) segment increased 24.6% Y/Y to $491 million.
Margins: The non-GAAP gross margin grew by 290 bps to 47.5%. The non-GAAP EBITDA margin expanded by 150 bps to 21.4%.
Non-GAAP EPS of $3.94 beat the consensus of $3.92.
Zebra held $85 million in cash and equivalents.
"Our revised full-year outlook reflects tighter enterprise customer capex and project deferrals in this uncertain macroeconomic environment and moderating demand through distribution," CEO Bill Burns said. "We are mitigating the impact of softer sales with focused go-to-market initiatives and incremental cost actions."
Outlook: Zebra's second quarter net sales guidance of $1.307 billion-$1.336 billion compared to the consensus of $1.410 billion.
It saw the non-GAAP EPS of $3.20-$3.40, well below the street consensus of $4.17.
Zebra cut its FY23 net sales outlook from $5.608 billion-$5.839 billion to $5.434 billion-$5.665 billion compared to the consensus of $5.740 billion.
ZBRA Price Action: Zebra Technologies shares are down 10.54% at $257.15 at publication Tuesday.