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A month has gone by since the last earnings report for Zebra Technologies (ZBRA). Shares have added about 5.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Zebra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Zebra Technologies Q3 Earnings & Revenues Top Estimates, Rise Y/Y
Zebra Technologies reported third-quarter 2024 adjusted earnings of $3.49 per share, which surpassed the Zacks Consensus Estimate of $3.24. The bottom line increased significantly from 87 cents reported in the year-ago quarter.
Total revenues of $1.26 billion surpassed the consensus estimate of $1.21 billion. The top line increased 31.3% year over year, driven by strength in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking units. Consolidated organic net sales increased 30.6% year over year. Foreign-currency translation had a positive impact of 0.7% on total revenues.
Segmental Performance
Revenues from the Asset Intelligence & Tracking segment rose 26.5% year over year to $410 million. The Zacks Consensus Estimate for segmental revenues was pegged at $391 million. Organic net sales increased 25.8%. Foreign-currency translation had a positive impact of 0.7% on segmental revenues.
The Enterprise Visibility & Mobility segment’s revenues totaled $845 million, up 33.7% year over year. The consensus estimate for segmental revenues was pegged at $819 million. Organic net sales increased 33%. Foreign-currency translation had a positive impact of 0.7%.
Margin Profile
In the third quarter, Zebra Technologies’ cost of sales totaled $642 million, up 21.4% year over year. Total operating expenses decreased 3.9% year over year to $422 million.
The company reported a net income of $137 million against a loss of $15 million in the year-ago period.
Balance Sheet and Cash Flow
Zebra Technologies had cash and cash equivalents of $676 million at the end of the third quarter compared with $137 million at the end of December 2023. Long-term debt totaled $2.08 billion compared with $2.05 billion at the end of December 2023.
In the first nine months of 2024, Zebra Technologies generated net cash of $707 million in operating activities against $145 million cash used in the year-ago period. The company incurred a capital expenditure of $41 million in the same time frame. Free cash inflow amounted to $665.9 million against free cash outflow of $193 million in the year-ago period.