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Apr 01, 2023
Zebra Q1 2023 Earnings Report
Announced first-quarter 2023 results, demonstrating resilience in a challenging environment.
Key Takeaways
Zebra Technologies reported Q1 2023 results with net sales of $1,405 million, a 1.9% year-over-year decrease. Net income was $150 million, with diluted EPS at $2.90. Adjusted EBITDA increased by 5.6% year-over-year to $301 million.
Net sales reached $1,405 million, a 1.9% decrease year-over-year.
Net income was reported at $150 million, with a diluted EPS of $2.90.
Non-GAAP diluted EPS decreased 1.7% year-over-year to $3.94.
Adjusted EBITDA increased 5.6% year-over-year to $301 million.
Zebra
Zebra
Zebra Revenue by Segment
Revenue by Segment
EVM Revenue
CapyFin.comAIT Revenue
CapyFin.com Forward Guidance
The Company expects second quarter 2023 net sales to decrease between 9% and 11% compared to the prior year. Adjusted EBITDA margin for the second quarter of 2023 is expected to be approximately 20%. Non-GAAP diluted earnings per share are expected to be in the range of $3.20 to $3.40.
Positive Outlook
- Expects second quarter 2023 net sales to decrease between 9% and 11% compared to the prior year.
- Includes an approximately 2 percentage point negative impact from foreign currency translation and an approximately 1 percentage point additive impact from acquisitions.
- Adjusted EBITDA margin for the second quarter of 2023 is expected to be approximately 20%.
- Non-GAAP diluted earnings per share are expected to be in the range of $3.20 to $3.40.
- Assumes an adjusted effective tax rate of approximately 19% reflecting the United Kingdom's corporate tax rate increase.
Challenges Ahead
- Expects net sales to decrease between 2% and 6% compared to 2022.
- Includes an approximately 1 point negative impact from foreign currency translation and a 50 basis point additive impact from acquisitions.
- Adjusted EBITDA margin is expected to be approximately 22%, which includes approximately $40 million of premium supply chain expense.
- Free cash flow is expected to be between $450-$550 million reflecting lower profitability and elevated inventory, higher cash taxes
- Inclusive of the anticipated $180 million of previously announced settlement payments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income