Zebra Technologies beats Q4 estimates, shares dip on weak 2025 guidance

Published 13/02/2025, 12:40
Zebra Technologies beats Q4 estimates, shares dip on weak 2025 guidance

LINCOLNSHIRE, Ill. - Zebra Technologies Corporation reported better-than-expected fourth-quarter results on Thursday, but shares fell 2.10% as the company’s full-year 2025 earnings guidance came in below analyst expectations.

The digitizing and automation solutions provider posted adjusted earnings per share (EPS) of $4.00, surpassing the analyst estimate of $3.95. Revenue for the quarter reached $1.33 billion, slightly above the consensus estimate of $1.32 billion and representing a 32.2% YoY increase.

Zebra’s strong performance was driven by robust year-end spending from North American retail customers. Net sales in the Enterprise Visibility & Mobility segment grew 33.6% YoY to $886 million, while the Asset Intelligence & Tracking segment saw a 29.5% YoY increase to $448 million.

CEO Bill Burns commented, "Our teams executed well, delivering results that exceeded our outlook. Strong year-end spending by our North American retail customers drove our fourth quarter outperformance."

Despite the positive Q4 results, Zebra’s outlook for 2025 fell short of expectations. The company forecasts full-year 2025 EPS between $14.75 and $15.25, below the analyst consensus of $16.00.

For the first quarter of 2025, Zebra expects EPS in the range of $3.50 to $3.70, compared to the consensus estimate of $3.57.

The company anticipates net sales growth of 3% to 7% for 2025, factoring in a 130 basis point unfavorable impact from foreign currency translation. Zebra also expects an adjusted EBITDA margin between 21% and 22% for the year.

As of December 31, 2024, Zebra reported cash and cash equivalents of $901 million and total debt of $2,183 million. The company generated free cash flow of $954 million for the full year 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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