Zebra Technologies Corp ZBRA reported a fiscal second-quarter 2024 net sales growth of 0.2% year-on-year to $1.22 billion, beating the analyst consensus estimate of $1.19 billion.
The mobile computing company’s adjusted EPS of $3.18 beat the analyst consensus estimate of $3.06. The stock price gained after the print.
Consolidated organic net sales for the quarter decreased by 0.3% Y/Y.
Net sales in the Enterprise Visibility & Mobility (EVM) segment grew 8.6% Y/Y to $820 million. The net sales of the Asset Intelligence and Tracking (AIT) segment decreased by 13.5% Y/Y to $397 million.
The adjusted gross margin improved by 60 bps to 48.6%. This was primarily due to lower premium supply chain costs.
The adjusted EBITDA margin declined by 70 bps to 20.5%, primarily due to higher operating expenses.
Zebra held $411 million in cash and equivalents as of June 29, 2024.
The company reiterated the 2022 Productivity Plan and Voluntary Retirement Plan will entail charges of $130 million. Net annualized expense savings will be $120 million.
“We returned to growth in enterprise mobile computing across all our vertical end markets and delivered another quarter of sequential improvement in profitability as a result of our continued cost discipline and improved gross margin,” said Bill Burns, CEO of Zebra Technologies.
Outlook: Zebra expects third-quarter net sales to increase by 25%-28% Y/Y compared to the consensus of $1.19 billion. It projects an adjusted EPS of $3.00–$3.30 versus the street consensus of $3.06.
Zebra expects fiscal 2024 net sales growth of 4%-7% (prior 1%-5%) Y/Y compared to the consensus of $4.77 billion. It projected adjusted EPS of $12.30-$12.90 (prior $11.25–$12.25) versus consensus of $11.92.
ZBRA Price Action: Zebra shares are up 4% at $348.49 on Tuesday at publication.
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