Zebra Tech Q4 Earnings: Revenue Surges 32%, CEO Cites Strong Retail Demand

Zebra Technologies Corp ZBRA reported financial results for the fourth quarter Thursday. Here’s what you need to know from the report.

Q4 Earnings: The mobile computing company reported sales of $1.33 billion, up by 32.2%, beating analyst estimates of $1.32 billion.

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Zebra reported adjusted earnings of $4.00 per share, exceeding analyst estimates of $3.94. The stock price declined after the report.

Zebra’s two main business segments also saw substantial growth during the period. The Enterprise Visibility & Mobility segment recorded net sales of $886 million, up 33.6% from the previous year. The Asset Intelligence & Tracking segment recorded net sales of $448 million, up 29.5% from the previous year.

The consolidated adjusted gross margin increased 410 bps to 48.7%, primarily due to volume leverage. Adjusted EBITDA margin expanded by 670 bps to 22.1%.

The company said it had $901 million in cash and cash equivalents as of Dec. 31.

CEO Bill Burns noted that strong year-end spending by its North American retail customers drove the fourth quarter outperformance. For the remainder of the year, he remains cautious in his growth outlook as its customers navigate an uncertain environment, including a dynamic global trade, geopolitical, and macroeconomic backdrop.

Outlook: For the first quarter, Zebra expects sales growth of 8%-11% or $1.27 billion-$1.30 billion versus the $1.27 billion estimate. The company expects adjusted earnings of $3.50-$3.70 per share versus estimates of $3.56.

The company expects fiscal 2025 net sales growth of 3%-7% or $5.13 billion-$5.33 billion versus the $5.37 billion estimate. It expects adjusted earnings of $14.75-$15.25 per share versus the $15.89 per share estimate.

Zebra Technologies stock surged 32% in the last 12 months. Wall Street analysts raised their price targets on the stock after its upbeat quarterly results in the previous five quarters.

Price Action: ZBRA stock is down 8.59% at 322.61 at the last check Thursday.

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