Zebra Technologies (NASDAQ:ZBRA) Issues Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Zebra Technologies (NASDAQ:ZBRA) announced its earnings results on Tuesday. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.89 by $0.06, Briefing.com reports. The company had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.57 billion. Zebra Technologies had a return on equity of 22.29% and a net margin of 9.22%. The firm’s quarterly revenue was up 22.3% compared to the same quarter last year. During the same period in the prior year, the company posted $3.88 EPS.

Here are the key takeaways from Zebra Technologies’ conference call:

• Record Q3 performance: Sales exceeded $1.6 billion, up 22.3% year over year (11.3% organically), while non-GAAP EPS rose 28% to $4.95, surpassing company expectations on broad-based demand.
• Zebra raised its full-year outlook to approximately 17% sales growth and $21.20 in non-GAAP EPS, with fourth-quarter EPS guided to $5.00–$5.40 and free cash flow expected to reach at least $1 billion.
• Demand is particularly strong for mobile computing, transportation and logistics, healthcare, machine vision, and Elo Touch; management cited a robust multi-year pipeline of global transportation and logistics refresh projects beginning in 2027.
• The company reported progress securing memory supply, including five newly qualified suppliers and additional inventory, supporting its ability to meet mobile-computing demand into 2027; management expects 2027 growth at the high end of its 5%–7% long-term range.
• Memory costs increased by more than $50 million year over year in Q3 and are expected to create a $145 million full-year headwind, contributing to a 220-basis-point decline in adjusted gross margin; pricing actions and productivity savings are intended to fully offset the impact.

Zebra Technologies Price Performance

Zebra Technologies stock traded down $34.34 during midday trading on Tuesday, reaching $326.80. The company had a trading volume of 735,826 shares, compared to its average volume of 781,342. The company has a market capitalization of $15.57 billion, a P/E ratio of 30.25 and a beta of 1.61. Zebra Technologies has a 12-month low of $199.05 and a 12-month high of $392.78. The firm’s fifty day simple moving average is $367.39 and its 200-day simple moving average is $280.91. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.52 and a quick ratio of 0.33.

Wall Street Analyst Weigh In

A number of brokerages recently commented on ZBRA. BNP Paribas Exane reiterated an “outperform” rating and issued a $455.00 target price (up from $370.00) on shares of Zebra Technologies in a research report on Wednesday, August 5th. Zacks Research cut shares of Zebra Technologies from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. KeyCorp upped their price objective on shares of Zebra Technologies from $305.00 to $430.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Citigroup reaffirmed a “buy” rating on shares of Zebra Technologies in a report on Monday, October 12th. Finally, Wall Street Zen upgraded shares of Zebra Technologies from a “buy” rating to a “strong-buy” rating in a research note on Monday. Nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $385.83.

Insider Activity at Zebra Technologies

In other Zebra Technologies news, insider Michael Cho sold 3,500 shares of Zebra Technologies stock in a transaction on Friday, August 7th. The shares were sold at an average price of $375.20, for a total transaction of $1,313,200.00. Following the sale, the insider owned 5,170 shares of the company’s stock, valued at $1,939,784. The trade was a 40.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Linda Connly sold 500 shares of the business’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $377.68, for a total transaction of $188,840.00. Following the transaction, the director owned 3,708 shares in the company, valued at $1,400,437.44. The trade was a 11.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.91% of the company’s stock.

About Zebra Technologies

Zebra Technologies Corp. (NASDAQ: ZBRA) develops technologies that help businesses identify, track and manage assets, inventory and operational processes. Its solutions are used by organizations in retail, manufacturing, transportation and logistics, healthcare, government and other industries to improve visibility and productivity across their operations.

The company’s portfolio includes barcode and label printers, barcode scanners, mobile computers, radio-frequency identification (RFID) readers and tags, machine-vision systems, fixed industrial scanners and related software.