Why Zebra Technologies Shares Are Trading Lower Today

Zebra Technologies Corp ZBRA reported first-quarter FY22 net sales growth of 6.3% year-on-year to $1.43 billion, beating the consensus of $1.37 billion. Consolidated organic net sales for the quarter increased 5.4%.
Net sales in the Enterprise Visibility & Mobility (EVM) segment rose 12.7% Y/Y to $1.04 billion. Asset Intelligence & Tracking (AIT) segment net sales declined 8.2% Y/Y to $394 million.
Margins: The non-GAAP gross margin contracted 430 bps to 44.6%.
The non-GAAP EBITDA margin contracted 540 bps to 19.9%.
Non-GAAP EPS of $4.01 beat the consensus of $3.87.
Zebra held $141 million in cash and equivalents.
"Sales and earnings exceeded the high end of our guidance ranges, despite supply chain costs that were higher than our expectations," said CEO Anders Gustafsson. "Despite global macro headwinds, we are reiterating our full-year 2022 sales outlook given our strong order backlog and robust pipeline. Due to increased premium freight and supply chain costs from global pressures since our prior outlook, we are lowering our full-year 2022 adjusted EBITDA margin guide."
Outlook: Zebra sees Q2 net sales of approximately $1.42 billion - $1.48 billion, versus the consensus of $1.43 billion.
It sees non-GAAP EPS of $4.05 - $4.35, below the consensus of $4.52.
Zebra reiterated the FY22 net sales outlook of $5.80 billion - $6.03 billion versus the consensus of $5.95 billion.
Price Action: ZBRA shares traded lower by 4.86% at $361.11 on the last check Tuesday.

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