ZBRA - Zebra Technologies stock plunges 10% on weak guidance

2023-05-02 09:57:17 ET

Zebra Technologies ( NASDAQ: ZBRA ) shares fell nearly 10% in early trading on Tuesday as the mobile computing company offered second-quarter guidance that was far weaker than Wall Street anticipated.

Looking ahead, Zebra ( ZBRA ) expects net sales for the second-quarter to decline between 9% and 11% year-over-year, with adjusted earnings between $3.20 and $3.40 per share. Zebra ( ZBRA ) generated $1.468B in net revenue in the year-ago period.

Analysts were anticipating $1.4B revenue for the upcoming quarter and $4.17 per share in adjusted earnings.

The Lincolnshire, Illinois-based company blamed a negative impact from foreign currency headwinds in part for its struggles.

Looking ahead, Zebra ( ZBRA ) said it expects full-year sales to decline between 2% and 6% year-over-year, also citing foreign currency changes for part of the downfall.

Free cash flow is expected to be between $450 and $550M, due in part to lower profitability, elevated inventory, higher taxes and a previously announced $180M settlement.

In conjunction with the weak outlook, Zebra Technologies ( ZBRA ) offered first-quarter results that topped estimates. The company generated $1.41B in revenue during the period, topping estimates by $10M, as its Asset Intelligence & Tracking segment generated $491M in the period, up from $394M in the year-ago quarter.

Zebra ( ZBRA ) also earned $3.94 per share during the quarter, topping estimates by 2 cents.

More on Zebra Technologies

• Zebra Technologies rises as Credit Suisse upgrades ahead of Q1 results
• Zebra Technologies Q1 2023 Earnings Preview

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