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Dec 31, 2019
Zebra Q4 2019 Earnings Report
Zebra Technologies' Q4 2019 results were announced, showcasing revenue growth and increased profitability.
Key Takeaways
Zebra Technologies reported a 4.8% increase in net sales, reaching $1,192 million, driven by growth in North America and EMEA, although partially offset by lower sales in Asia-Pacific. Net income increased by 47.0% to $169 million, with diluted EPS rising by 46.9% to $3.10. Adjusted EBITDA also saw a 6.3% increase, reaching $255 million.
Net sales increased by 4.8% year-over-year to $1,192 million.
Net income rose by 47.0% year-over-year to $169 million.
Non-GAAP diluted EPS increased by 14.8% year-over-year to $3.56.
Adjusted EBITDA increased by 6.3% year-over-year to $255 million.
Zebra
Zebra
Zebra Revenue by Segment
Revenue by Segment
EVM Revenue
CapyFin.comAIT Revenue
CapyFin.com Forward Guidance
The company anticipates net sales for the first quarter of 2020 to increase by approximately 4% to 7% compared to the first quarter of 2019. The adjusted EBITDA margin is expected to be around 20%. For the full year 2020, net sales are projected to increase by approximately 4% to 6% from 2019, with an adjusted EBITDA margin slightly higher than 22%.
Positive Outlook
- First-quarter 2020 net sales are expected to increase approximately 4% to 7% year-over-year.
- Acquisitions are expected to add approximately 1 percentage point to the net sales increase in the first quarter of 2020.
- The adjusted EBITDA margin is expected to be approximately 20% for the first quarter of 2020.
- Full-year 2020 net sales are expected to increase approximately 4% to 6% from 2019.
- The adjusted EBITDA margin is expected to be slightly higher than 22% for the full-year 2020.
Challenges Ahead
- The outlook does not take into account the full potential impact of the coronavirus outbreak.
- An approximate 1 percentage point negative impact from foreign currency translation is expected in the first quarter of 2020.
- The adjusted EBITDA margin for the first quarter of 2020 includes approximately $10 million in net incremental cost of sales attributable to Section 301 List 4 tariffs.
- The adjusted EBITDA margin for the first quarter of 2020 includes approximately $4 million of additional freight expense related to the coronavirus outbreak.
- Diversifying sourcing of U.S. volumes out of China is expected to result in up to an additional $25 million of one-time pre-tax charges through mid-2020, plus an estimated $10-15 million of capital expenditures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income