Zebra Technologies Reports Decline in Q4 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy ZBRA?
Source: NASDAQ.COM
- Earnings Decline: Zebra Technologies reported a net income of $70 million for Q4, translating to $1.39 per share, a significant drop from last year's $163 million and $3.14 per share, indicating profitability challenges that may affect investor confidence.
- Adjusted Earnings Performance: Excluding items, adjusted earnings stood at $219 million or $4.33 per share, reflecting a decline from last year but demonstrating resilience in core operations, potentially laying the groundwork for future recovery.
- Revenue Growth: The company achieved a 10.6% year-over-year revenue increase to $1.475 billion, up from $1.334 billion last year, suggesting strong market demand that could support future growth prospects.
- Future Guidance: Zebra provided Q1 EPS guidance of $4.05 to $4.35, with revenue growth expectations between 11% and 15%, indicating cautious optimism from management regarding future performance, which may attract investor interest.
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Analyst Views on ZBRA
Wall Street analysts forecast ZBRA stock price to rise
7 Analyst Rating
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 274.150
Low
291.00
Averages
363.80
High
415.00
Current: 274.150
Low
291.00
Averages
363.80
High
415.00
About ZBRA
Zebra Technologies Corporation is engaged in the Automatic Identification and Data Capture (AIDC) industry. The Company helps organizations monitor, anticipate, and accelerate workflows by empowering their frontline and ensuring that everyone and everything is visible, connected and fully optimized. Its portfolio includes hardware, software, and services. It operates through two segments: Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM). The AIT segment is engaged in barcode printing and asset tracking technologies. Its product lines include barcode and card printers, radio frequency identification devices (RFID) and real-time location systems (RTLS) offerings, and supplies, including temperature-monitoring labels, and services. The EVM segment is engaged in automatic information and data capture solutions. Its product lines include mobile computing, data capture, fixed industrial scanning and machine vision, services, and workflow optimization solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Positioning: Despite rising hardware costs, Zebra maintains a leading position in high-growth sectors such as e-commerce and digitized healthcare records, with the CEO highlighting the company's industry leadership in AI solutions as a competitive advantage.
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- Optimistic Outlook: Management anticipates revenues of approximately $1.48 billion and adjusted earnings of around $4.18 per share for the next quarter, both significantly above current Wall Street projections, reflecting strong confidence in future growth.
- AI Solutions Provider: While Zebra is not widely recognized in the AI space, its positioning as a supplier of AI solutions for frontline business operations aligns perfectly with the needs of high-growth markets such as manufacturing, e-commerce, healthcare, and fast food, highlighting its strategic significance.
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- Future Outlook: The CFO projected sales growth for 2026 to be between 9% and 13%, with first-quarter sales growth guidance ranging from 11% to 15%, including approximately 10 points from business acquisitions and favorable FX, indicating strong confidence in future growth.
- Cash Flow and Buybacks: Zebra generated $831 million in free cash flow for 2025 and plans to repurchase around 50% of its free cash flow in 2026, enhancing shareholder returns and demonstrating a proactive approach to capital management.
See More
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- Cisco Profit Warning: Cisco Systems forecasted that rising memory chip prices would erode profitability, leading to a more than 10% drop in its stock price, which may prompt investors to revise down their future performance expectations, negatively impacting overall market sentiment.
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