Enterprise data capture company Zebra Technologies (NASDAQ: ZBRA) will be announcing earnings results this Tuesday before the bell. Here’s what to look for.
Zebra met analysts’ revenue expectations last quarter, reporting revenues of $1.29 billion, up 6.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS guidance for next quarter estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
Is Zebra a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Zebra’s revenue to grow 4.9% year on year to $1.32 billion, slowing from the 31.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.75 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zebra has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.2% on average.
Looking at Zebra’s peers in the tech hardware & electronics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Amphenol delivered year-on-year revenue growth of 53.4%, beating analysts’ expectations by 10.9%, and TD SYNNEX reported revenues up 6.6%, topping estimates by 3.5%. Amphenol traded up 8.8% following the results while TD SYNNEX was also up 9.5%.
Read our full analysis of Amphenol’s results here and TD SYNNEX’s results here.
Investors in the tech hardware & electronics segment have had steady hands going into earnings, with share prices flat over the last month. Zebra is up 3.7% during the same time and is heading into earnings with an average analyst price target of $372.33 (compared to the current share price of $308).
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