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Zebra Technologies Gears Up to Post Q4 Earnings: What to Expect

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Zebra Technologies Corporation (ZBRA - Free Report) is slated to release fourth-quarter 2024 results on Feb. 13, before market open.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Zacks Consensus Estimate for revenues is pegged at $1.31 billion, which indicates growth of 29.9% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $3.95 per share, indicating an increase of 131% from a year ago.

The consensus estimate for earnings has been stable in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 10.2%.

Let’s see how things have shaped up for Zebra Technologies this earnings season.

Factors Likely to Have Influenced ZBRA’s Q4 Performance

Solid demand for mobile computing products and data capture solutions is expected to have driven Enterprise Visibility & Mobility’s fourth-quarter performance. An increase in sales of services and software, driven by retail software wins, is also likely to have augmented its top line. The Zacks Consensus Estimate for the Enterprise Visibility & Mobility segment’s revenues is pegged at $871 million, which indicates a 34.4% increase from the year-ago number.

Recovery in demand for RFID (radio frequency identification) products is anticipated to have driven the performance of the Asset Intelligence and Tracking segment. However, weakness in the printing solution end market is likely to have offset some gains. The Zacks Consensus Estimate for the Asset Intelligence and Tracking segment’s revenues is pegged at $441 million, indicating 27.5% growth from the year-ago number.

The company’s focus on boosting digital capabilities, optimizing the supply chain, and expanding data analytics capability and marketing activities is likely to have boosted its performance. Also, ZBRA’s expanded cost-reduction program and employee voluntary retirement plan are likely to have boosted its margins and profitability.

Given the company’s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Zebra Technologies' overseas business.

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for ZBRA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Zebra Technologies has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $3.95. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Zebra Technologies presently carries a Zacks Rank #4 (Sell).

Stocks With the Favorable Combination

Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.

Lincoln Electric (LECO - Free Report) has an Earnings ESP of +1.17% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release fourth-quarter results on Feb. 13. LECO’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 5.4%.

Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter results on Feb. 18.

Flowserve’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 10.8%.

TriMas Corporation (TRS - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank of 3 at present. The company is slated to release its fourth-quarter 2024 results on Feb. 27.


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