ZBRA stock: Zebra Technologies misses Q3 targets

Zebra Technologies (ZBRA), a maker of enterprise systems used to track and manage inventory and assets, missed Wall Street’s third-quarter targets on Tuesday. It also led lower for the current quarter, citing weaker demand. ZBRA stock plummeted in early trade.


The Lincolnshire, Illinois-based company earned an adjusted $4.12 per share on sales of $1.38 billion for the September quarter. Analysts polled by FactSet were expecting earnings of $4.53 per share for Zebra on sales of $1.48 billion. Year over year, Zebra’s earnings declined 9% while revenue declined 4%.

For the current quarter, Zebra is forecasting adjusted earnings of $4.50 to $4.80 per share. The midpoint of $4.65 is below Wall Street’s target of $5.15. It also forecast sales would fall a fraction to $1.46 billion based on the midpoint of its forecast. Analysts had expected fourth-quarter revenue to rise 5% to $1.54 billion.

“We are recovering from supply chain challenges related to ongoing component shortages and the transition to our new North American distribution center,” Chief Executive Anders Gustafsson said in a press release. “These challenges, along with certain large customer projects being postponed, impacted product shipments that exited the quarter, resulting in lower than expected sales and profitability.”

ZBRA stock slips after report

He added, “Customer demand and our order pipeline generally remain solid, however, we have seen softening demand and lengthening sales cycles since the end of the third quarter.”

During morning trade on the stock market, ZBRA shares fell 8.1% to 260.38.

Zebra manufactures rugged mobile computers, barcode scanners and printers, and RFID tracking tags that connect to enterprise systems to provide real-time visibility into inventory and other assets. It offers systems for retail, e-commerce, healthcare, manufacturing, transportation and other industries.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories about consumer technology, software and semiconductor stocks.


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