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Dec 31, 2022

Zebra Q4 2022 Earnings Report

Zebra Technologies reported strong fourth quarter results, driven by double-digit growth in the Americas while recovering from supply chain challenges.

Key Takeaways

Zebra Technologies announced its Q4 2022 results, with net sales increasing by 2.5% year-over-year to $1,503 million. Net income decreased by 2.6% to $186 million, while non-GAAP diluted EPS increased by 4.6% to $4.75. The company is taking a cautious approach to its outlook due to the uncertain macro environment.

Net sales increased by 2.5% year-over-year to $1,503 million.

Net income decreased by 2.6% year-over-year to $186 million.

Non-GAAP diluted EPS increased by 4.6% year-over-year to $4.75.

Adjusted EBITDA increased by 6.0% year-over-year to $338 million.

Total Revenue
$1.5B
Previous year: $1.47B
+2.5%
EPS
$4.75
Previous year: $4.54
+4.6%
Gross Margin
45.6%
Previous year: 45.6%
+0.0%
Adjusted EBITDA
$338M
Previous year: $319M
+6.0%
Adjusted EBITDA Margin
22.5%
Previous year: 21.7%
+3.7%
Gross Profit
$685M
Previous year: $669M
+2.4%
Cash and Equivalents
$105M
Previous year: $332M
-68.4%
Free Cash Flow
$413M
Previous year: $1.01B
-59.1%
Total Assets
$7.53B
Previous year: $6.22B
+21.1%

Zebra

Zebra

Zebra Revenue by Segment

Forward Guidance

The company expects net sales to decline between -4% and -1% compared to the first quarter of 2022. Adjusted EBITDA margin is expected to be approximately 21%. Non-GAAP earnings per diluted share are expected to be in the range of $3.70 to $4.00.

Positive Outlook

  • Expects an approximately 150 basis point additive impact from acquisitions.
  • Adjusted EBITDA margin is expected to be approximately 21%.
  • Non-GAAP earnings per diluted share are expected to be in the range of $3.70 to $4.00.

Challenges Ahead

  • Net sales to decline between -4% and -1% compared to the first quarter of 2022.
  • Includes an approximately 3 percentage point negative impact from foreign currency translation.
  • Includes approximately $20 million of premium supply chain expense.

Revenue & Expenses

Visualization of income flow from segment revenue to net income