Zebra Technologies Q1 Earnings & Revenues Top Estimates, Rise Y/Y

Zebra Technologies Corporation ZBRA reported first-quarter 2025 adjusted earnings of $4.02 per share, which surpassed the Zacks Consensus Estimate of $3.60. The bottom line increased 41.5% from $2.84 per share reported in the year-ago quarter.

Total revenues of $1.31 billion surpassed the consensus estimate of $1.28 billion. The top line increased 11.3% year over year, driven by strength in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking units. Consolidated organic net sales increased 11.9% year over year. Foreign-currency translation had a negative impact of 0.7% on total revenues. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

ZBRA’s Segmental Performance

Revenues from the Asset Intelligence & Tracking segment rose 17.9% year over year to $462 million. The Zacks Consensus Estimate for segmental revenues was pegged at $434 million. Organic net sales increased 18.4%. Foreign-currency translation had a negative impact of 0.5% on total revenues.

The Enterprise Visibility & Mobility segment’s revenues totaled $846 million, up 8.1% year over year. The consensus estimate for segmental revenues was pegged at $852 million. Organic net sales increased 8.6%. Foreign-currency translation had a negative impact of 0.7% on total revenues.

ZBRA’s Margin Profile

In the first quarter, Zebra Technologies’ cost of sales totaled $663 million, up 8.3% year over year. Total operating expenses increased 11.4% year over year to $450 million.

The company reported a net income of $136 million compared with $115 million in the year-ago period.

Zebra Technologies’ Balance Sheet and Cash Flow

Zebra Technologies had cash and cash equivalents of $879 million at the end of the first quarter compared with $901 million at the end of December 2024. Long-term debt totaled $2.1 billion compared with $2.09 billion at the end of December 2024.

In the first three months of 2025, Zebra Technologies generated net cash of $178 million in operating activities compared with $125 million in the year-ago period. The company incurred a capital expenditure of $20 million in the same time frame. Free cash flow amounted to $158 million compared with $111 million in the year-ago period.

ZBRA’s Guidance

For the second quarter of 2025, Zebra Technologies expects net sales to increase in the band of 4-7% year over year. Foreign currency translation is anticipated to have a neutral impact of 1%. 

Adjusted EBITDA margin is anticipated to be approximately 19% in the second quarter. Adjusted earnings per share are expected to be in the band of $3.00-$3.50. 

For 2025, ZBRA has increased its adjusted earnings outlook. The company now expects adjusted earnings to be in the range of $13.75-$14.75 per share compared with $14.75-$15.25 anticipated earlier. ZBRA expects net sales to increase in the band of 3-7% year over year. It expects free cash flow to be at least $700 million.

ZBRA’s Zacks Rank

The company currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

AZZ Inc. AZZ came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.

AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million. 

Valmont Industries VMI reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share of $4.32 for the same period compare with $4.32 a year ago.

The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.

Pentair plc PNR came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.

Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.

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

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