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Sep 28, 2024

Zebra Q3 2024 Earnings Report

Zebra Technologies' third quarter performance reflected excellent execution, continuing recovery in demand, strong gross margin, and the completion of restructuring actions, enabling sales and earnings results above the high end of its outlook.

Key Takeaways

Zebra Technologies reported a strong third quarter in 2024, with net sales of $1,255 million, a 31.3% year-over-year increase. Net income was $137 million, or $2.64 per diluted share, and non-GAAP diluted EPS increased to $3.49. Adjusted EBITDA increased to $268 million. The company completed exit and restructuring actions, driving $120 million in annualized net expense savings.

Net sales increased by 31.3% year-over-year to $1,255 million.

Net income reached $137 million, with earnings per diluted share at $2.64.

Non-GAAP diluted EPS rose to $3.49.

Adjusted EBITDA increased to $268 million.

Total Revenue
$1.26B
Previous year: $956M
+31.5%
EPS
$3.49
Previous year: $0.87
+301.1%
Gross Margin
48.8%
Previous year: 44.7%
+9.2%
Adjusted EBITDA
$268M
Previous year: $111M
+141.4%
Adjusted EBITDA Margin
21.4%
Previous year: 11.6%
+84.5%
Gross Profit
$613M
Previous year: $427M
+43.6%
Cash and Equivalents
$676M
Previous year: $61M
+1008.2%
Free Cash Flow
$666M
Previous year: -$193M
-445.1%
Total Assets
$7.69B
Previous year: $7.33B
+4.9%

Zebra

Zebra

Zebra Revenue by Segment

Forward Guidance

The Company expects fourth quarter sales growth between 28% and 31% compared to the prior year. Fourth quarter Adjusted EBITDA margin is expected to be approximately 22%. Non-GAAP diluted earnings per share are expected to be in the range of $3.80 to $4.00. Free cash flow for the full year is expected to be at least $850 million.

Positive Outlook

  • Fourth quarter sales growth between 28% and 31% compared to the prior year.
  • Foreign currency translation is expected to have approximately a 1 percentage point favorable impact.
  • Fourth quarter Adjusted EBITDA margin is expected to be approximately 22%.
  • Non-GAAP diluted earnings per share are expected to be in the range of $3.80 to $4.00.
  • Free cash flow for the full year is expected to be at least $850 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income