Zebra Technologies' Q3 2024 Earnings: What to Expect

Barchart · 10/16 07:54

Valued at a market cap of $19.3 billion, Zebra Technologies Corporation (ZBRA) operates in the automatic identification and data capture (AIDC) industry, providing enterprise asset intelligence solutions. It designs and manufactures products such as barcode scanners, RFID readers, mobile computers, and specialty printers, alongside offering related software and services for various industries. The company is set to release its Q3 earnings before the market opens on Tuesday, Oct. 29.

Ahead of this event, analysts expect Zebra Technologies to report a profit of $2.89 per share, up significantly 407% from $0.57 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion. ZBRA exceeded the consensus estimate by 6.9% in the most recent quarter.

For fiscal 2024, analysts expect ZBRA to report EPS of $11.09, up 25.9% from $8.81 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 24.4% year-over-year to $13.80.

In 2024, ZBRA increased 37.3%, outperforming the broader S&P 500 Index's ($SPX) 21.9% rise and the Technology Select Sector SPDR Fund's (XLK) 18.8% gain on a YTD basis.

Zebra Technologies stock surged 3.9% on Jul. 30 after the company announced Q2 adjusted earnings of $3.18 per share on revenue of $1.2 billion, surpassing Wall Street's expectations. The improved profitability was driven by a 50 basis point increase in gross margin to 48.4%, attributed to cost-cutting measures and a strategic exit from lower-margin businesses. Additionally, the company raised its full-year adjusted earnings outlook, projecting earnings between $12.30 per share and $12.90 per share, significantly above analysts' consensus estimate, which further fueled investor optimism.

Analysts' consensus rating on Zebra Technologies stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 15 analysts covering the stock, opinions include eight "Strong Buys," one "Moderate Buy," five "Holds," and one "Strong Sell." This configuration is more bullish than three months ago, with six analysts suggesting a "Strong Buy." Currently, ZBRA is trading slightly above the average analyst price target of $375.15.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.