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Jun 29, 2024

Zebra Q2 2024 Earnings Report

Announced second-quarter results, exceeding guidance ranges due to strong execution and cost discipline.

Key Takeaways

Zebra Technologies reported a slight increase in net sales and maintained profitability through cost discipline and improved gross margin. The company's EVM segment drove growth, while AIT segment sales declined. Increased full year outlook reflecting Q2 performance and early signs of momentum in demand led by mobile computing, balanced with continued cautious customer spending behavior.

Net sales increased by 0.2% year-over-year to $1,217 million.

Net income decreased by 21.5% year-over-year to $113 million, with diluted EPS at $2.17.

Adjusted EBITDA decreased to $250 million, with a margin of 20.5%.

The company is on track with $120 million annualized net expense savings from Exit and Restructuring plans.

Total Revenue
$1.21B
Previous year: $1.21B
-0.2%
EPS
$3.18
Previous year: $3.29
-3.3%
Gross Margin
48.4%
Previous year: 47.9%
+1.0%
Adjusted EBITDA
$250M
Previous year: $257M
-2.7%
Adjusted EBITDA Margin
20.5%
Previous year: 21.2%
-3.3%
Gross Profit
$589M
Previous year: $581M
+1.4%
Cash and Equivalents
$411M
Previous year: $68M
+504.4%
Free Cash Flow
$389M
Previous year: -$144M
-370.1%
Total Assets
$7.49B
Previous year: $7.46B
+0.5%

Zebra

Zebra

Zebra Revenue by Segment

Forward Guidance

The Company expects net sales to increase between 25% and 28% compared to the prior year. Adjusted EBITDA margin is expected to be between 20% and 21%. Non-GAAP diluted earnings per share are expected to be in the range of $3.00 to $3.30.

Revenue & Expenses

Visualization of income flow from segment revenue to net income