Earnings Review and Free Research Report: Zebra Technologies’ Adjusted EPS Jumped 29.06%

Research Desk Line-up: Nordson Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Zebra Technologies Corp. (NASDAQ: ZBRA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ZBRA, following the Company’s disclosure of its second quarter financial results on August 08, 2017. The producer of printers for bar codes, plastic cards, and radio-frequency identification tags outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Diversified Machinery industry. Pro-TD has currently selected Nordson Corporation (NASDAQ: NDSN) for due-diligence and potential coverage as the Company reported on August 21, 2017, its financial results for Q3 FY17. Register for a free membership today, and be among the early birds that get access to our report on Nordson when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ZBRA; also brushing on NDSN. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

Zebra Technologies’ net sales were $896 million in Q2 2017 compared to $879 million in Q2 2016. The Company’s revenue numbers exceeded analysts’ expectations of $874.8 million.

For Q2 2017, Zebra Technologies’ gross profit totaled $411 million compared to $406 million in the prior year’s corresponding period. The Company’s adjusted gross margin was 46.0% for the reported quarter compared to 46.4% in the prior year’s same period. The decrease was primarily due to changes in business mix. Zebra Technologies’ adjusted operating expenses decreased to $274 million in Q2 2017 from $282 million in Q2 2016; reflecting the company’s continued focus on improving operating efficiency, controlling expenses, and the divestiture of the wireless LAN business.

Zebra Technologies’ net income was $17 million, or $0.32 per diluted share, for Q2 2017 compared to a net loss of $45 million, or ($0.88) per diluted share, for Q2 2016. The Company’s non-GAAP net income was $80 million, or $1.51 per diluted share, for the reported quarter compared to $59 million, or $1.17 per diluted share, for the year ago corresponding period. Zebra Technologies’ earnings beat Wall Street’s expectations of $1.45 per share.

For Q2 2017, Zebra Technologies’ adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $159 million, or 17.7% of adjusted net sales, compared to $144 million, or 16.3% of adjusted net sales, for Q2 2016. This was primarily due to higher gross profit and lower operating expenses.

Sales Details

Zebra Technologies’ consolidated adjusted net sales were $897 million in Q2 2017 compared to $882 million in Q2 2016. The Company’s consolidated organic net sales growth for the reported quarter was 6.4%; reflecting growth across all regions, most notably North America and Latin America.

During Q2 2017, Zebra Technologies net sales in the Enterprise segment were $584 million compared to $577 million in Q2 2016. The Company’s Legacy Zebra segment’s net sales were $313 million in the reported quarter versus $305 million in the prior year’s comparable quarter. In Q2 2017, Zebra Technologies’ organic net sales grew 7.9% on a y-o-y basis in the Enterprise segment and 3.7% in the Legacy Zebra segment.

Balance Sheet and Cash Flow

As of July 01, 2017, Zebra Technologies had cash and cash equivalents of $95 million and total long-term debt of $2.4 billion.

The Company’s free cash flow was $181 million in H1 2017. Zebra Technologies generated $203 million and incurred capital expenditure of $22 million. During H1 2017, the Company made $240 million in term loan payments and $70 million in scheduled cash interest payments.

Outlook

For Q3 2017, Zebra Technologies is forecasting adjusted net sales to change approximately (1) % to 2% from adjusted net sales of $906 million in Q3 2016. The Company expects organic net sales growth of approximately 2% to 5% in the upcoming quarter.

For Q3 2017, Zebra Technologies is forecasting adjusted EBITDA margin to be approximately 18% to 19%, favorable to the prior year’s same period. Non-GAAP earnings per diluted share are expected to be in the range of $1.65 to $1.85, assuming an effective tax rate in the low- to mid-20% range for the upcoming quarter.

For FY17, Zebra Technologies is anticipating 3% to 6% organic net sales growth, which is at the higher end of its prior outlook. The Company expects adjusted EBITDA margin to be in the band of 18% to 19% for the full year 2017; an improvement compared to the full year 2016. For the full year 2017, Zebra Technologies expects to make debt principal payments totaling at least $300 million.

Stock Performance

On Tuesday, August 29, 2017, the stock closed the trading session at $101.59, dropping 1.20% from its previous closing price of $102.82. A total volume of 272.27 thousand shares have exchanged hands. Zebra Technologies’ stock price soared 11.99% in the past six months and 42.70% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 18.46%. The stock currently has a market cap of $5.38 billion.

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