Zebra Technologies Stock Up 5% On Q3 Earnings
Alpha InspirationTuesday, Oct 29, 2024 12:51 pm ET
1min readZebra Technologies Corporation (NASDAQ: ZBRA), a leading provider of digital solutions enabling businesses to intelligently connect data, assets, and people, reported strong third-quarter results, driving a 5% increase in its stock price. The company's robust performance was underpinned by exceptional execution, a recovering demand, and the successful completion of its restructuring actions.
Zebra's gross margin and operating expenses both improved significantly compared to the previous year. Gross margin increased to 48.8%, up 410 basis points from the prior year, primarily due to volume leverage and business mix. Operating expenses decreased to $422 million, down from $439 million in the prior year, mainly due to lower restructuring costs and incremental savings attributed to the restructuring actions.
The company's restructuring actions generated approximately $120 million of net annualized cost savings, primarily within operating expenses. To date, the company has realized $110 million in net savings. This strategic move has significantly contributed to the company's enhanced profitability.
Zebra's Enterprise Visibility & Mobility (EVM) and Asset Intelligence & Tracking (AIT) segments both contributed to the overall strong quarterly performance. The EVM segment reported net sales of $845 million, up 33% year-over-year, while the AIT segment recorded net sales of $410 million, up 25.8% year-over-year. This impressive growth was driven by increased demand and a favorable business mix.
The company's relentless focus on innovation has enabled it to maintain a competitive edge and secure wins. This commitment to innovation, coupled with the successful execution of its restructuring actions, has positioned Zebra Technologies well for future growth and success.
Zebra Technologies' increased full-year outlook for profitable growth reflects its recent performance and continued momentum in demand. The company expects fourth-quarter sales growth between 28% and 31% compared to the prior year. This positive outlook is a testament to the company's strong position in the market and its ability to capitalize on opportunities in the supply chain.
Zebra's gross margin and operating expenses both improved significantly compared to the previous year. Gross margin increased to 48.8%, up 410 basis points from the prior year, primarily due to volume leverage and business mix. Operating expenses decreased to $422 million, down from $439 million in the prior year, mainly due to lower restructuring costs and incremental savings attributed to the restructuring actions.
The company's restructuring actions generated approximately $120 million of net annualized cost savings, primarily within operating expenses. To date, the company has realized $110 million in net savings. This strategic move has significantly contributed to the company's enhanced profitability.
Zebra's Enterprise Visibility & Mobility (EVM) and Asset Intelligence & Tracking (AIT) segments both contributed to the overall strong quarterly performance. The EVM segment reported net sales of $845 million, up 33% year-over-year, while the AIT segment recorded net sales of $410 million, up 25.8% year-over-year. This impressive growth was driven by increased demand and a favorable business mix.
The company's relentless focus on innovation has enabled it to maintain a competitive edge and secure wins. This commitment to innovation, coupled with the successful execution of its restructuring actions, has positioned Zebra Technologies well for future growth and success.
Zebra Technologies' increased full-year outlook for profitable growth reflects its recent performance and continued momentum in demand. The company expects fourth-quarter sales growth between 28% and 31% compared to the prior year. This positive outlook is a testament to the company's strong position in the market and its ability to capitalize on opportunities in the supply chain.
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