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Zebra
🇺🇸 NASDAQ:ZBRA
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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.

Total Revenue
$1.19B
Previous year: $1.14B
+4.8%
EPS
$3.56
Previous year: $3.1
+14.8%
Gross Margin
45.6%
Previous year: 47.4%
-3.8%
Adjusted EBITDA
$255M
Previous year: $240M
+6.3%
Adjusted EBITDA Margin
21.4%
Previous year: 21.1%
+1.4%
Gross Profit
$544M
Previous year: $539M
+0.9%
Cash and Equivalents
$30M
Previous year: $44M
-31.8%
Free Cash Flow
$624M
Previous year: $309M
+101.9%
Total Assets
$4.71B
Previous year: $4.34B
+8.6%

Zebra

Zebra

Zebra Revenue by Segment

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

Company Overview

Full financial data and analysis

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