Zebra Technologies, a maker of enterprise systems for tracking inventory and assets, on Thursday edged above Wall Street's targets for the fourth quarter. But its guidance for the current period missed analyst estimates. ZBRA stock fell on the news.
The Lincolnshire, Ill.-based company earned an adjusted $4.54 a share on sales of $1.47 billion in the December quarter. Analysts had expected Zebra earnings of $4.40 a share on sales of $1.46 billion, according to FactSet. On a year-over-year basis, Zebra earnings rose 2% while sales increased 12%.
For the first quarter, Zebra predicted sales will increase 1% to 3% compared with the year-ago quarter. It targeted adjusted earnings of $3.70 to $4 a share. The midpoint of its guidance is $3.85 a share in adjusted earnings and $1.37 billion in sales. Analysts had estimated $4.41 in earnings per share and $1.41 billion in sales, FactSet said.
Zebra makes rugged mobile computers, bar code scanners and printers, and RFID tracking tags that link to enterprise systems to enable real-time visibility of inventory and other assets. It offers systems for retail, e-commerce, health care, manufacturing, transportation and other industries.
ZBRA Stock Slips On News
On the stock market today, ZBRA stock fell 7.8% to close at 466.63. On Wednesday, ZBRA stock advanced 2.9% to 506.02.
ZBRA stock hit an all-time high of 615 on Dec. 10. But it tumbled during the stock market correction.
"Performance was at the high end of our guidance, despite an exceptionally challenging supply chain environment, including premium freight costs that were higher than our expectations," Chief Executive Anders Gustafsson said in a news release.
He added, "While the supply chain constrains us from fully satisfying customer demand, we enter the year with a strong order backlog and a robust pipeline of business, positioning us well for profitable growth in 2022."
Supply Chain Issues Seen Easing
Chief Financial Officer Nathan Winters told Investor's Business Daily that supply chain challenges are likely to peak in the first quarter and abate throughout the year. Zebra expects full-year sales growth of 3% to 7%, he said.
"Despite the increased pressure from the ongoing supply constraints, we expect strong top- and bottom-line growth for the year," he said. "Our products and solutions are enabling our customers to digitize and automate their operations."
ZBRA stock ranks third out of 33 stocks in IBD's Electronics-Miscellaneous Products industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 81 out of 99. The Composite Rating scores a stock's key growth metrics against all other stocks regardless of industry group.
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