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Jun 27, 2020

Zebra Q2 2020 Earnings Report

Zebra Technologies reported a decrease in net sales and EPS due to the COVID-19 pandemic.

Key Takeaways

Zebra Technologies announced Q2 2020 results with net sales of $956 million, a 12.9% year-over-year decrease. Net income was $100 million, and non-GAAP diluted EPS was $2.41. The company believes sales bottomed in Q2 and expects second half trends to improve.

Net sales decreased by 12.9% year-over-year to $956 million.

Net income decreased to $100 million, with diluted EPS of $1.85.

Non-GAAP diluted EPS decreased to $2.41.

Adjusted EBITDA decreased to $175 million.

Total Revenue
$956M
Previous year: $1.1B
-12.9%
EPS
$2.41
Previous year: $3.02
-20.2%
Gross Margin
43.8%
Previous year: 47.4%
-7.6%
Adjusted EBITDA
$175M
Previous year: $233M
-24.9%
Adjusted EBITDA Margin
18.3%
Previous year: 21.2%
-13.7%
Gross Profit
$419M
Previous year: $520M
-19.4%
Cash and Equivalents
$63M
Previous year: $27M
+133.3%
Free Cash Flow
$227M
Previous year: $138M
+64.5%
Total Assets
$4.61B
Previous year: $4.7B
-2.0%

Zebra

Zebra

Zebra Revenue by Segment

Forward Guidance

The company expects third-quarter 2020 net sales to decrease approximately 3% to 7% from the third quarter of 2019 due to the continued recessionary global environment from COVID-19. Adjusted EBITDA margin for the third quarter of 2020 is expected to be approximately 19%, and Non-GAAP earnings per diluted share are expected to be in the range of $2.65 to $2.95.

Revenue & Expenses

Visualization of income flow from segment revenue to net income