Wed, Aug. 12, 5:20 PM
- After crashing yesterday due to a Q2 EPS miss (revenue beat) and soft Q3 EPS guidance (revenue guidance was in-line), Zebra Technologies (NASDAQ:ZBRA) rose 4.5% today with the help of an upgrade to Outperform from Baird's Richard Eastman.
- Eastman defended Zebra's strategy of pricing its hardware aggressively (thereby hurting near-term earnings) to gain share, noting it recently won two major retail contracts for its handheld computers while competing against consumer-grade devices.
- Zebra currently goes for 12x a 2016 EPS consensus of $7.09 (reduced from $7.23 before earnings). Over $50/share in net debt is on the balance sheet.
Tue, Aug. 11, 1:20 PM
- In addition to missing Q2 EPS estimates (while beating on revenue), Zebra Technologies (NASDAQ:ZBRA) is guiding for Q3 EPS of $1.10-$1.35, below a $1.41 consensus. Revenue guidance of $900M-$930M is in-line with a $916M consensus.
- Weighing on Q2 EPS: Gross margin fell to 44.2% from Q1's 45.8% and Q2 2014's 49.3%. Zebra blames the Y/Y drop on forex, purchase accounting adjustments, and the acquisition of Motorola Solutions' enterprise unit - the Motorola products collectively sport a lower GM.
- Product revenue totaled $796.9M, and software/services revenue $127.8M. GAAP operating expenses amounted to $406.7M. Zebra ended Q2 with $205M in cash and (thanks to the Motorola deal) $3B in debt.
- Q2 results, PR
Tue, Aug. 11, 12:45 PM
Tue, Aug. 11, 6:31 AM
Wed, May 13, 12:45 PM
Wed, May 13, 10:18 AM
- Zebra Technologies (NASDAQ:ZBRA) has surged to new highs after soundly beating Q1 estimates. Q2 guidance is for revenue of $865M-$895M and EPS of $1.00-$1.25 vs. a consensus of $877M and $1.17.
- Q1 sales received a lift from a 15% Y/Y increase in revenue for Zebra's traditional businesses to $331.6M. Businesses obtained through the acquisition of Motorola Solutions' enterprise ops saw revenue fall 6% to $561.6M; they were also declining prior to the acquisition. Forex had a $2.4M revenue impact.
- Gross margin fell to 45.8% from 51.3% a year ago thanks to the Motorola deal, and operating expenses totaled $389.7M. Zebra ended Q1 with $329.5M in cash, and $3.1B in long-term debt.
- Q1 results, PR
Tue, Mar. 31, 11:13 AM
- Wells Fargo has upgraded Zebra Technologies (ZBRA +2.9%) to Outperform. Shares are less than $2 away from a 52-week high of $92.48.
- Though the Street's initial response was less than enthusiastic, Zebra is now up 33% since announcing a $3.45B deal to buy Motorola Solutions' enterprise hardware unit 11 months ago.
Nov. 21, 2014, 11:46 AM| Nov. 21, 2014, 11:46 AM | 1 Comment
Oct. 3, 2014, 5:36 PM
Aug. 5, 2014, 5:37 PM
Aug. 5, 2014, 10:56 AM
- Motorola Solutions (MSI -3.1%) is guiding for Q3 revenue to drop 7%-9% Y/Y. EPS from continuing ops, which exclude an enterprise unit that will soon be acquired by Zebra Technologies (ZBRA -5.4%) for $3.45B, is expected to be in a range of $0.35-$0.41.
- The consensus, which includes enterprise sales, is for 0.3% revenue growth and EPS of $1.02. Motorola still expects a full-year revenue decline in the low-to-mid single-digit range.
- Not counting the enterprise unit, Motorola's product revenue fell 10% Y/Y in Q2 to $887M, and its services revenue (driven by past deals) fell 1% to $506M. Gross margin was down 300 bps Y/Y to 47.1%. EPS received a lift from $416M in buybacks.
- The enterprise unit saw revenue drop 8% Y/Y to $560M. Motorola blames "some supply chain and IT execution issues related to transitioning business processes as well as weaker demand in Asia."
- That figure is overshadowing a Q2 beat for Zebra. The inventory/location-tracking hardware firm is guiding for Q3 revenue of $285M-$295M and EPS of $0.81-$0.91 vs. a consensus of $291.3M and $0.88.
- Motorola: Q2 results, PR. Zebra: Q2 results, PR.
Jul. 8, 2014, 12:57 PM
- With shares up 57% YTD going into today, Imperial Capital has downgraded Zebra (ZBRA -1.7%) to In-Line. Its PT remains at $85.
- In spite of the downgrade, Imperial remains bullish about the synergies Zebra stands to reap from the purchase of Motorola Solutions' enterprise unit, and the cyclical growth potential of Zebra's enterprise ops.
Jun. 18, 2014, 10:42 AM| Jun. 18, 2014, 10:42 AM | 1 Comment
Jun. 17, 2014, 5:35 PM
Jun. 17, 2014, 4:07 PM
Apr. 15, 2014, 2:26 PM
- Zebra Technologies (ZBRA -11.1%) aren't thrilled with the company's plans to spend $3.45B in cash to buy Motorola Solutions' (MSI -1.3%) enterprise hardware/software unit. (FT report)
- Zebra, which had only $416M in cash/investments at the end of 2013, says it will pay with $200M in cash on hand and $3.25B in new debt. Zebra's current market cap only stands at $3.05B. The deal is expected to close by year's end.
- Motorola's enterprise unit offers barcode scanners and RFID readers that complement Zebra's inventory/location-tracking and specialized printing products. It also sells Wi-Fi hardware, interactive kiosks, handheld computers, and two-way radios.
- The unit had 2013 pro forma sales of $2.5B, easily surpassing Zebra's 2013 sales of $1B. But it has been struggling: Sales were down 2% in 2013, and op. income fell 9% to $358M.
- Along with the deal, Motorola has announced it expects to report Q1 revenue of $1.8B (-9% Y/Y) and EPS of $0.50, below a consensus of $1.88B and $0.51. 2014 revenue is now expected to fall by a single-digit %; the consensus is for a 0.7% increase.
- Excluding acquisition expenses, Zebra expects to report Q1 revenue of $287M-$289M and EPS of $0.88-$0.91, above a consensus of $281.6M and $0.83.
ZBRA vs. ETF Alternatives
Zebra Technologies Corp designs, manufactures, sells and supportsdirect thermal and thermal transfer label printers, radio frequency identification printer/encoders, dye sublimation card printers, real-time locating solutions, and support software.
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