Zebra Technologies Corp reports results for the quarter ended September 30 - Earnings Summary

What happened

Zebra Technologies reported quarterly adjusted earnings of $4.95 per share, above the $4.90 analyst average and last year's $3.88. Revenue rose 22.3% to $1.61 billion, beating the $1.56 billion expected. Reported earnings per share were $3.43 and net income was $164 million.

Confirmed

Global impact / market context

Higher revenue and adjusted profit than analysts expected suggest Zebra sold more equipment or charged more for it, which can lift profit per sale and cash available. Because the reported profit measure was much lower than the adjusted figure, investors may focus on one-time items separating the two numbers.

Analyst inference

Analysts rate the stock a buy, with a median price target of $418, about 13.6% above the $361.13 last close. That implies analysts see room for further gains even after the shares gained 48.7% so far this year.

Analyst inference

What to watch

1. Watch whether the 11 buy ratings and 6 hold ratings shift, since no analyst has a sell rating and the average target sits above the last closing price. Confirmed
2. The company could face pressure to explain the gap between adjusted earnings of $4.95 and reported earnings of $3.43, so watch for details on one-time costs. Proposed
3. If revenue growth of 22.3% slows in coming quarters while costs stay high, profit per sale could narrow and weigh on a stock already up 48.7% this year. Analyst inference

Evidence

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