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Sep 30, 2023
Zebra Q3 2023 Earnings Report
Third quarter results were impacted by broad-based end market softness and elongated sales cycles across product categories, as well as distributor destocking.
Key Takeaways
Zebra Technologies reported a decrease in net sales by 30.6% year-over-year to $956 million, with a net loss of $15 million, or $(0.28) per diluted share. Adjusted EBITDA decreased to $111 million. The company expects a significant sequential improvement in profitability due to cost restructuring actions.
Net sales decreased by 30.6% year-over-year to $956 million.
Net loss was $15 million, with a net loss per diluted share of $(0.28).
Non-GAAP diluted EPS decreased year-over-year to $0.87.
Adjusted EBITDA decreased year-over-year to $111 million.
Zebra
Zebra
Zebra Revenue by Segment
Revenue by Segment
EVM Revenue
CapyFin.comAIT Revenue
CapyFin.com Forward Guidance
The Company expects fourth quarter 2023 net sales to decrease between 32% and 36% compared to the prior year. Adjusted EBITDA margin for the fourth quarter of 2023 is expected to be approximately 16%. Non-GAAP diluted earnings per share are expected to be in the range of $1.40 to $1.80.
Positive Outlook
- Adjusted EBITDA margin for the fourth quarter of 2023 is expected to be approximately 16%.
- Non-GAAP diluted earnings per share are expected to be in the range of $1.40 to $1.80.
- Free cash flow is expected to be positive for the second half of 2023.
- Cost reduction plans now expected to drive $100 million annualized net expense savings, an increase from $85 million.
- Expect to see a significant sequential improvement in profitability.
Challenges Ahead
- Fourth quarter 2023 net sales to decrease between 32% and 36% compared to the prior year.
- Free cash flow is expected to be negative for the full year.
- Lower profitability.
- Elevated inventory.
- Higher cash taxes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income