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Zebra
🇺🇸 NASDAQ:ZBRA
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•
Mar 30, 2024

Zebra Q1 2024 Earnings Report

Announced first-quarter results, impacted by broad-based softness across end markets but realized improvement in demand from the fourth quarter of 2023. The company executed well, driving significant sequential improvement in profitability due to cost restructuring actions and improved gross margin.

Key Takeaways

Zebra Technologies reported Q1 2024 net sales of $1,175 million, a 16.4% year-over-year decrease. Net income was $115 million, or $2.23 per diluted share. Adjusted EBITDA decreased to $234 million. The company is on track with $120 million annualized net expense savings from Exit and Restructuring plans.

Net sales of $1,175 million, a 16.4% year-over-year decrease.

Net income of $115 million and net income per diluted share of $2.23.

Non-GAAP diluted EPS decreased year-over-year to $2.84.

Adjusted EBITDA decreased year-over-year to $234 million.

Total Revenue
$1.18B
Previous year: $1.41B
-16.4%
EPS
$2.84
Previous year: $3.94
-27.9%
Gross Margin
47.9%
Previous year: 47.5%
+0.8%
Adjusted EBITDA
$234M
Previous year: $301M
-22.3%
Adjusted EBITDA Margin
19.9%
Previous year: 21.4%
-7.0%
Gross Profit
$563M
Previous year: $667M
-15.6%
Cash and Equivalents
$127M
Previous year: $85M
+49.4%
Free Cash Flow
$111M
Previous year: -$92M
-220.7%
Total Assets
$7.26B
Previous year: $7.47B
-2.9%

Zebra

Zebra

Zebra Revenue by Segment

Forward Guidance

The Company expects second quarter 2024 net sales to decrease between 1% and 5% compared to the prior year. Adjusted EBITDA margin for the second quarter of 2024 is expected to be slightly above 19%. Non-GAAP diluted earnings per share are expected to be in the range of $2.60 to $2.90. The Company expects full year 2024 net sales growth between 1% and 5% compared to the prior year. Adjusted EBITDA margin for the full year 2024 is expected to be approximately 20%. Non-GAAP diluted earnings per share are expected to be in the range of $11.25 to $12.25.

Positive Outlook

  • Second quarter 2024 net sales to decrease between 1% and 5% compared to the prior year.
  • Foreign currency translation is expected to have an approximately 50 basis point favorable impact.
  • Adjusted EBITDA margin for the second quarter of 2024 is expected to be slightly above 19%.
  • Non-GAAP diluted earnings per share are expected to be in the range of $2.60 to $2.90.
  • Free cash flow is expected to be at least $600 million.

Challenges Ahead

  • Full year 2024 net sales growth between 1% and 5% compared to the prior year.
  • Adjusted EBITDA margin for the full year 2024 is expected to be approximately 20%.
  • Non-GAAP diluted earnings per share are expected to be in the range of $11.25 to $12.25.
  • Assumes an adjusted effective tax rate of approximately 17%.
  • Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Zebra