ZBRA - Zebra Technologies reports Q3 earnings miss; sees Q4 EPS of $4.50 to $4.80 below estimates

• Zebra Technologies press release ( NASDAQ: ZBRA ): Q3 Non-GAAP EPS of $4.12 misses by $0.41 .
• Revenue of $1.38B (-4.2% Y/Y) misses by $100M .
• Adjusted EBITDA decreased 6.7% Y/Y to $291M, or 21.1% of adjusted net sales, compared to $312M, or 21.7% of adjusted net sales for the third quarter of 2021 due to lower gross profit and higher operating expenses.
• Outlook: The company expects fourth quarter 2022 adjusted net sales to change (2)% to 1% from the prior year period. This expectation includes an approximately 2 point additive impact from recently acquired businesses, and an approximately 4 point negative impact from foreign currency translation.
• Adjusted EBITDA margin for the fourth quarter of 2022 is expected to be approximately 22-23%. Non-GAAP earnings per diluted share are expected to be in the range of $4.50 to $4.80 vs. consensus of $5.15.
• Free cash flow is now expected to be at least $400 million, reflecting lower profitability and elevated inventory, and inclusive of the anticipated $135 million of previously announced settlement payments.

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