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Zebra Technologies Corporation ZBRA reported first-quarter 2025 adjusted earnings of $4.02 per share, which surpassed the Zacks Consensus Estimate of $3.60. The bottom line increased 41.5% from $2.84 per share reported in the year-ago quarter.
Total revenues of $1.31 billion surpassed the consensus estimate of $1.28 billion. The top line increased 11.3% year over year, driven by strength in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking units. Consolidated organic net sales increased 11.9% year over year. Foreign-currency translation had a negative impact of 0.7% on total revenues. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
ZBRA’s Segmental Performance
Revenues from the Asset Intelligence & Tracking segment rose 17.9% year over year to $462 million. The Zacks Consensus Estimate for segmental revenues was pegged at $434 million. Organic net sales increased 18.4%. Foreign-currency translation had a negative impact of 0.5% on total revenues.
The Enterprise Visibility & Mobility segment’s revenues totaled $846 million, up 8.1% year over year. The consensus estimate for segmental revenues was pegged at $852 million. Organic net sales increased 8.6%. Foreign-currency translation had a negative impact of 0.7% on total revenues.
Zebra Technologies Corporation Price, Consensus and EPS Surprise
Zebra Technologies Corporation price-consensus-eps-surprise-chart | Zebra Technologies Corporation Quote
ZBRA’s Margin Profile
In the first quarter, Zebra Technologies’ cost of sales totaled $663 million, up 8.3% year over year. Total operating expenses increased 11.4% year over year to $450 million.
The company reported a net income of $136 million compared with $115 million in the year-ago period.
Zebra Technologies’ Balance Sheet and Cash Flow
Zebra Technologies had cash and cash equivalents of $879 million at the end of the first quarter compared with $901 million at the end of December 2024. Long-term debt totaled $2.1 billion compared with $2.09 billion at the end of December 2024.
In the first three months of 2025, Zebra Technologies generated net cash of $178 million in operating activities compared with $125 million in the year-ago period. The company incurred a capital expenditure of $20 million in the same time frame. Free cash flow amounted to $158 million compared with $111 million in the year-ago period.
ZBRA’s Guidance
For the second quarter of 2025, Zebra Technologies expects net sales to increase in the band of 4-7% year over year. Foreign currency translation is anticipated to have a neutral impact of 1%.
Adjusted EBITDA margin is anticipated to be approximately 19% in the second quarter. Adjusted earnings per share are expected to be in the band of $3.00-$3.50.
For 2025, ZBRA has increased its adjusted earnings outlook. The company now expects adjusted earnings to be in the range of $13.75-$14.75 per share compared with $14.75-$15.25 anticipated earlier. ZBRA expects net sales to increase in the band of 3-7% year over year. It expects free cash flow to be at least $700 million.