Zebra Technologies Gears Up to Post Q1 Earnings: What's in Store?

Zebra Technologies Corporation ZBRA is slated to release first-quarter 2025 results on April 29, before market open. 

The Zacks Consensus Estimate for revenues is pegged at $1.28 billion, which indicates growth of 9% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $3.60 per share, indicating an increase of 26.8% 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 9.3%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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

Factors Likely to Have Influenced ZBRA’s Q1 Performance

Strong demand for mobile computing products and data capture solutions is expected to have driven Enterprise Visibility & Mobility’s first-quarter performance. 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 $852 million, which indicates an 8.8% increase from the year-ago number.

Recovery in 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 $434 million, indicating 10.7% growth from the year-ago number.

Despite strength across end markets, Zebra Technologies’ performance has been negatively impacted by high costs and expenses over time. Although supply-chain constraints moderated, labor shortage and an increase in raw material costs are expected to have hurt the company’s bottom line in the to-be-reported quarter.

Also, given the company’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 Corporation Price and EPS Surprise

Zebra Technologies Corporation price-eps-surprise | Zebra Technologies Corporation 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 $3.60. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Zebra Technologies presently carries a Zacks Rank #4 (Sell).

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 +1.96% 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 first-quarter 2025 results on May 7. EMR’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.3%.

Illinois Tool Works ITW has an Earnings ESP of +1.52% and a Zacks Rank of 3 at present. The company is slated to release first-quarter results on April 30.

ITW’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.6%.

Parker-Hannifin Corporation PH has an Earnings ESP of +1.01% and a Zacks Rank of 3 at present. The company is slated to release its third-quarter fiscal 2025 results on May 1.

PH delivered an average earnings surprise of 5.4% 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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