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Oct 01, 2022
Zebra Q3 2022 Earnings Report
Announced third-quarter 2022 results, impacted by supply chain challenges and deferred customer projects.
Key Takeaways
Zebra Technologies reported net sales of $1,378 million, a 4.0% year-over-year decrease. Net income was $170 million, with a non-GAAP diluted EPS of $4.12, a 9.5% year-over-year decrease. The company is taking a cautious approach to Q4 sales outlook and expense management due to softening demand and elongated sales cycles.
Net sales decreased by 4.0% year-over-year to $1,378 million.
Net income decreased to $170 million, with diluted earnings per share of $3.26.
Non-GAAP diluted EPS decreased by 9.5% year-over-year to $4.12.
Adjusted EBITDA decreased by 6.7% year-over-year to $291 million.
Revenue by Segment
Forward Guidance
The company expects fourth quarter 2022 adjusted net sales to change (2)% to 1% from the prior year period. Adjusted EBITDA margin for the fourth quarter of 2022 is expected to be approximately 22-23%. Non-GAAP earnings per diluted share are expected to be in the range of $4.50 to $4.80.
Positive Outlook
- Expects fourth quarter 2022 adjusted net sales to change (2)% to 1% from the prior year period.
- Includes an approximately 2 point additive impact from recently acquired businesses.
- Adjusted EBITDA margin for the fourth quarter of 2022 is expected to be approximately 22-23%.
- Non-GAAP earnings per diluted share are expected to be in the range of $4.50 to $4.80.
- Assumes an adjusted effective tax rate of approximately 17-18%.
Challenges Ahead
- Expects an approximately 4 point negative impact from foreign currency translation.
- Free cash flow is now expected to be at least $400 million, reflecting lower profitability and elevated inventory.
- Includes the anticipated $135 million of previously announced settlement payments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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