Zebra Technologies (ZBRA) Tops Q1 EPS by 7c, Offers Outlook

Zebra Technologies (NASDAQ: ZBRA) reported Q1 EPS of $1.37, $0.07 better than the analyst estimate of $1.30. Revenue for the quarter came in at $865 million versus the consensus estimate of $847.75 million.

GUIDANCE:

Zebra Technologies sees Q2 2017 EPS of $1.35-$1.55, versus the consensus of $1.45.

The company expects second-quarter 2017 adjusted net sales to change approximately (2)% to 1% from adjusted net sales of $882 million in the second quarter of 2016. The company expects organic net sales growth of approximately 3% to 6% in the second quarter. This expectation excludes a 4 percentage point adverse impact from wireless LAN business sales, as well as an estimated 1 percentage point adverse impact from foreign currency translation.

Adjusted EBITDA margin is expected to be in the range of 17% to 18% for the second quarter 2017, an improvement from the prior year period. Non-GAAP earnings per diluted share are expected to be in the range of $1.35 to $1.55, assuming an effective tax rate in the low- to mid-20% range.

Full Year 2017

The company now expects low to mid-single digit organic net sales growth for the full year 2017, which is improved from our prior outlook, and excludes a 3 percentage point adverse impact from wireless LAN business sales, as well as an estimated 1 percentage point adverse impact from foreign currency translation. The company expects organic net sales growth to moderate through 2017 considering year-over-year comparisons.

Adjusted EBITDA margin is expected to be in the range of 18% to 19% for the full year 2017, an improvement compared to the full year 2016.

For the full year 2017, the company expects to make debt principal payments totaling at least $300 million.

For earnings history and earnings-related data on Zebra Technologies (ZBRA) click here.

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