ZBRA - Zebra Technologies Non-GAAP EPS of $3.94 beats by $0.02 revenue of $1.41B beats by $10M

2023-05-02 06:33:02 ET

• Zebra Technologies press release ( NASDAQ: ZBRA ): Q1 Non-GAAP EPS of $3.94 beats by $0.02 .
• Revenue of $1.41B (-1.4% Y/Y) beats by $10M .
• Net sales in the Enterprise Visibility & Mobility ("EVM") segment were $914 million in the first quarter of 2023 compared with $1,038 million in the prior year. Asset Intelligence & Tracking ("AIT") segment net sales were $491 million in the first quarter of 2023 compared to $394 million in the prior year. Consolidated organic net sales for the first quarter decreased 0.3% year-over-year, with an 11.2% decrease in the EVM segment and 28.4% increase in the AIT segment.

• Outlook

  Second Quarter 2023

  The Company expects second quarter 2023 net sales to decrease between 9% and 11% compared to the prior year. This expectation includes an approximately 2 percentage point negative impact from foreign currency translation and an approximately 1 percentage point additive impact from acquisitions.

  Adjusted EBITDA margin for the second quarter of 2023 is expected to be approximately 20%. Non-GAAP diluted earnings per share are expected to be in the range of $3.20 to $3.40 vs. $4.17 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 decrease between 2% and 6% compared to 2022. This expectation includes an approximately 1 point negative impact from foreign currency translation and a 50 basis point additive impact from acquisitions.

  Adjusted EBITDA margin is expected to be approximately 22%, which includes approximately $40 million of premium supply chain expense.

  Free cash flow is expected to be between $450-$550 million reflecting lower profitability and elevated inventory, higher cash taxes and is inclusive of the anticipated $180 million of previously announced settlement payments.

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