Zebra Technologies to Report Q2 Earnings: What's in the Offing?

Zebra Technologies Corporation ZBRA is slated to release second-quarter 2025 results on Aug. 5, before market open. 

The Zacks Consensus Estimate for revenues is pegged at $1.28 billion, which indicates growth of 5% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $3.31 per share, indicating an increase of 4.1% from a year ago.

The consensus estimate for earnings has been stable in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 8.4%. In the last reported quarter, it delivered an earnings surprise of 11.7%.

Let’s see how things have shaped up for Zebra Technologies this earnings season.

Factors Likely to Have Shaped ZBRA’s Q2 Performance

The Enterprise Visibility & Mobility segment is expected to have put up an impressive performance, driven by the solid demand for mobile computing products and data capture solutions. An increase in sales of services and software, driven by retail software wins, is also likely to have augmented its top line. The Zacks Consensus Estimate for the Enterprise Visibility & Mobility segment’s revenues is pegged at $853 million, which indicates a 4% increase from the year-ago number.

Solid demand for printing solutions and RFID (radio frequency identification) products is anticipated to have driven the performance of the Asset Intelligence and Tracking segment. The Zacks Consensus Estimate for the Asset Intelligence and Tracking segment’s revenues is pegged at $430 million, indicating 8.3% growth from the year-ago number.

Zebra Technologies remains focused on buyouts to expand its product offerings and customer base. This is likely to reflect in its second-quarter results. For instance, in March 2025, it acquired Photoneo, a market leader in the 3D machine vision solutions industry. This acquisition enhances ZBRA's portfolio of 3D machine vision solutions and addresses several challenges in high-value applications.

However, the company’s performance has been negatively impacted by high costs and expenses over time. Although supply-chain constraints moderated, an increase in raw material costs is expected to have hurt the bottom line in the to-be-reported quarter.

Also, given ZBRA’s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Zebra Technologies' overseas business.

Zebra Technologies Price and EPS Surprise

Zebra Technologies price-eps-surprise | Zebra Technologies Quote

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for ZBRA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Zebra Technologies has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at $3.31. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Zebra Technologies presently carries a Zacks Rank of 3.

Stocks With the Favorable Combination

Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.

Emerson Electric Co. EMR has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release third-quarter fiscal 2025 results on Aug. 6. EMR’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 3.4%.

Parker-Hannifin Corporation PH has an Earnings ESP of +0.23% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter fiscal 2025 results on Aug. 7.

PH’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.5%.

Atmus Filtration Technologies Inc. ATMU has an Earnings ESP of +9.64% and a Zacks Rank of 2 at present. The company is slated to release its second-quarter 2025 results on Aug. 8.

ATMU delivered an average earnings surprise of 14% in the last four quarters, while beating estimates in each of the quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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