What's in Store for Zebra Technologies (ZBRA) in Q3 Earnings?
Zebra Technologies Corporation ZBRA is slated to release third-quarter 2023 results on Oct 31, before market open.
The Zacks Consensus Estimate for the company’s third-quarter earnings has remained steady in the past 60 days. The company has a bleak earnings surprise history, having outperformed the Zacks Consensus Estimate in two of the preceding four quarters, while missing in the other two.
Let’s see how things have shaped up for Zebra Technologies this earnings season.
Zebra Technologies Corporation Price and EPS Surprise
Zebra Technologies Corporation price-eps-surprise | Zebra Technologies Corporation Quote
Factors to Note
Growth across data capture solutions, services, software and RFID (radio frequency identification) and improving supply chains are expected to drive Zebra Technologies’ third-quarter results.
Weakness in the printing end market is expected to hurt the Asset Intelligence and Tracking segment’s results in the to-be-reported quarter. However, strength in RFID is likely to partly offset the adversity. The Zacks Consensus Estimate for Asset Intelligence and Tracking segment’s revenues indicates a nearly 1% increase from the year-ago reported number.
Zebra Technologies has announced expanded cost-reduction actions, including an incremental $65 million of annualized expense reductions, as it grapples with a slowdown in end markets and demand softness. This is likely to get reflected in the company’s bottom-line results.
Due to demand softness in retail, e-commerce, transportation and logistics markets, Zebra Technologies anticipates a 30-35% drop in net sales from the year-ago reported quarter.
Significant weakness in the mobile computing market has been weighing on the Enterprise Visibility & Mobility segment. The Zacks Consensus Estimate for Enterprise Visibility & Mobility segment revenues suggests a 47% drop from the year-ago reported number. Unfavorable foreign currency movements may affect the company’s top-line results.
What Does the Zacks Model Say
Our proven model predicts an earnings beat for Zebra Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Zebra Technologies has an Earnings ESP of +0.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Zebra Technologies currently carries a Zacks Rank #3.
Highlights of Q2 Earnings
Zebra Technologies reported second-quarter 2023 adjusted earnings of $3.24 per share, beating the Zacks Consensus Estimate of $2.91. The bottom line fell 23.2% year over year. Total revenues of $1,214 million missed the Zacks Consensus Estimate of $1,311.1 million. The top line plunged 17.3% year over year due to softening demand and reduced consumer spending, the impact of which was more prominent in the retail and logistics end markets.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Honeywell International HON has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is set to release third-quarter results on Oct 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
Honeywell pulled off a trailing four-quarter earnings surprise of 3.5%, on average. The stock has gained 2.3% in a year.
Tenaris TS has an Earnings ESP of +1.42% and a Zacks Rank #3. The company is slated to release third-quarter results on Nov 1.
Tenaris delivered a trailing four-quarter earnings surprise of 7.7%, on average. The stock has rallied 14.2% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Honeywell International Inc. (HON) : Free Stock Analysis Report
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Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report
