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Lincolnshire, Illinois-based Zebra Technologies Corporation (ZBRA) provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry. Valued at $16.68 billion by market cap, the company offers mobile computers, printers, barcode scanners, RFID, locating systems hardware, software, interactive kiosks, printing supplies, and accessories. The leading digital solutions provider is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Tuesday, Jul. 30.
Ahead of the event, analysts expect ZBRA to report a profit of $2.48 per share on a diluted basis, down 23.5% from $3.24 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion.
For the full year, analysts expect ZBRA to report EPS of $10.76, up 22.1% from $8.81 in fiscal 2023.
ZBRA stock has outperformed the S&P 500’s ($SPX) 14% gains on a YTD basis, with shares up 18.9% during this period. Similarly, it outshined the S&P 500 Technology Sector SPDR’s (XLK) 12.5% gains over the same time frame.
On Apr. 30, ZBRA shares closed up more than 4% after reporting Q1 adjusted EPS of $2.84, which beat Wall Street expectations of $2.45. The company’s revenue was $1.18 billion, topping Wall Street forecasts of $1.14 billion. For Q2, ZBRA expects its adjusted EPS to be between $2.60 and $2.90, and its adjusted EBITDA margin is expected to be slightly above 19%. Meanwhile, its net sales are expected to decrease between 1% and 5% compared to the prior year.
The company expects full-year adjusted EPS to be between $11.25 and $12.25 and revenue growth to be between 1% and 5% compared to the prior year. Its adjusted EBITDA margin is expected to be approximately 20%. Meanwhile, its free cash flow is expected to be around $600 million. ZBRA shares have been on an uptrend since the day its results were released.
Analysts’ consensus opinion on ZBRA stock is bullish, with a “Moderate Buy” rating overall. Out of 14 analysts covering the stock, seven advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, five give a “Hold” rating, and one recommends a “Strong Sell.” The average analyst price target for ZBRA is $340.92, indicating a potential upside of 5.1% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
