Why Zebra Technologies (ZBRA) Shares Are Diving Today – Zebra Technologies (NASDAQ:ZBRA)

  • Zebra Technologies Corp ZBRA reported a third-quarter FY22 net sales decline of 4% year-on-year to $1.38 billion, missing the consensus of $1.48 billion. Consolidated organic net sales for the quarter decreased by 3.2%.
  • Net sales in the Enterprise Visibility & Mobility (EVM) segment fell 9% Y/Y to $963 million. The net sales of the asset Intelligence & Tracking (AIT) segment increased 9.8% Y/Y to $415 million.
  • Margins: The non-GAAP gross margin expanded 70 bps to 45.8%, driven by EVM.
  • The non-GAAP EBITDA margin contracted 60 bps to 21.1%.
  • Non-GAAP EPS of $4.12 missed the consensus of $4.54.
  • Zebra held $81 million in cash and equivalents.
  • “We are recovering from supply chain challenges related to persistent component shortages and the transition to our new North American distribution center. These challenges, along with certain large customer projects being deferred, impacted product shipments exiting the quarter, resulting in lower-than-expected sales and profitability,” said Anders Gustafsson, Chief Executive Officer of Zebra Technologies.
  • Outlook: Zebra’s Q4 net sales guidance of $1.44 billion -$1.48 billion was below the consensus of $1.54 billion.
  • The non-GAAP EPS forecast of $4.50 – $4.80 was below the consensus of $5.13.
  • In its Q2 report, ZBRA narrowed the range of its full-year outlook for adjusted net sales growth to 4% to 6% from 2021.
  • Price Actions: ZBRA shares traded lower by 12.13% at $248.88 on the last check Tuesday.
  • Photo Via Company

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