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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.
Zebra
Zebra
Zebra Revenue by Segment
Revenue by Segment
EVM Revenue
CapyFin.comAIT Revenue
CapyFin.com 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