ZBRA - Zebra Technologies beats Q4 top and bottom line estimates; initiates Q1 and FY23 outlook

• Zebra Technologies press release ( NASDAQ: ZBRA ): Q4 Non-GAAP EPS of $4.75 beats by $0.16 .
• Revenue of $1.5B (+2.0% Y/Y) beats by $50M .
• Adjusted EBITDA increased 6.0% year-over-year to $338M.
• Outlook: First Quarter 2023: The company expects net sales to decline between -4% and -1% compared to the first quarter of 2022. This expectation includes an approximately 3 percentage point negative impact from foreign currency translation and an approximately 150 basis point additive impact from acquisitions.
• Adjusted EBITDA margin is expected to be approximately 21%, which includes approximately $20 million of premium supply chain expense. Non-GAAP earnings per diluted share are expected to be in the range of $3.70 to $4.00 vs $4.15 consensus. This assumes an adjusted effective tax rate of approximately 19% reflecting the United Kingdom's corporate tax rate increase.
• Full Year 2023: The Company expects net sales to be in the range of a 3% decline and 1% growth compared to 2022. This expectation includes an approximately 1 percentage point negative impact from foreign currency translation and a 50 basis point additive impact from acquisitions.
• Adjusted EBITDA margin is expected to be between 22% and 23%, which includes approximately $50 million of premium supply chain expense.

• Free cash flow is expected to be at least $650 million inclusive of the anticipated $180 million of previously announced settlement payments.

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