Zebra Technologies Earnings Preview

Updated

Investors are on the edge of their collective seats, hoping that Zebra Technologies (NAS: ZBRA) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Friday, April 27. Zebra Technologies designs, manufactures, sells, and supports direct thermal and thermal transfer label printers, radio frequency identification printer/encoders, and dye sublimation card printers.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Zebra Technologies with four of five analysts rating it hold. Analysts don't like Zebra Technologies as much as competitor Intermec overall. One out of four analysts rate Intermec a buy compared to one of five for Zebra Technologies. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.

  • Revenue Forecasts: On average, analysts predict $243 million in revenue this quarter. That would represent a rise of 2.4% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.57 per share. Estimates range from $0.56 to $0.59.

What our community says:
CAPS All-Stars are solidly backing the stock, with 93.8% assigning it an "outperform" rating. The greater community backs the All-Stars, as 92.9% give it a rating of "outperform." Despite the majority sentiment in favor of Zebra Technologies, the stock has a middling CAPS rating of three out of five stars.


Management:
Zebra Technologies' profit has risen year-over-year by an average of 72.7% over the past five quarters. A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases.

Now, a look at how efficient management has been at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. Zebra Technologies has seen rising net margins year-over-year for the last four quarters. Net margins reflect what percentage of each dollar earned by the company becomes profit. Here is how Zebra Technologies has been doing for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

49.1%

48.8%

49.6%

50.6%

Operating Margin

17.0%

19.3%

19.0%

18.7%

Net Margin

14.2%

17.8%

13.4%

26.0%

For all our Zebra Technologies-specific analysis, including earnings and beyond, add Zebra Technologies to My Watchlist.

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