Zebra (ZBRA) to Report Q1 Earnings: What's in the Cards?
Zebra Technologies Corporation ZBRA is scheduled to report first-quarter 2022 results on May 3, before market open.
ZBRA’s earnings surpassed expectations in each of the trailing four quarters, the average being 9.7%. In the last reported quarter, earnings of $4.54 per share beat the Zacks Consensus Estimate of $4.32 by 5.1%.
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In the past three months, shares of Zebra have lost 25.2% compared with the industry’s decline of 21.6%.
Key Factors
Zebra is expected to have benefited in first-quarter 2022 from strong demand for its data capture, printing and supplies, enterprise mobile computing as well as services and software across all regions. Growing popularity of its Enterprise Asset Intelligence solutions, backed by investments in product development, is likely to have boosted its top line in the to-be-reported quarter. Also, ZBRA’s focus on supply-chain optimization coupled with its investment in growth initiatives is expected to have supported its results for the first quarter.
Acquisitions made by Zebra are likely to have impacted its top line positively in first-quarter 2022. It is worth noting that ZBRA’s buyouts proved to be accretive to its top line, adding 1.4%, 1.6%, 1.3% and 0.8% growth in the first, second, third and the fourth quarter of 2021. Considering strength across its purchased businesses, the trend might have continued in the first quarter of 2022 as well.
Coupled with Zebra’s fixed industrial scanning and machine vision portfolio, antuit.ai (acquired in October 2021) strengthened its position in the consumer products industry. The buyout of Fetch Robotics, Inc. (August 2021) enhanced ZBRA’s capability to offer a comprehensive line of state-of-the-art robotics solutions to its customers. Also, the acquisition of Adaptive Vision (May 2021) boosted its fixed industrial scanning and machine vision solution offerings.
However, over time, Zebra’s performance has been negatively impacted by high costs and expenses. In the fourth quarter of 2021, its cost of sales and operating expenses increased 15.7% and 15.2%, respectively, year over year. If not checked, escalating costs and expenses might have dampened its short-term profitability in the March quarter. Also, challenges related to supply chain and high freight costs are likely to have been a headwind.
Zebra’s global presence exposes it to certain political, environmental and geopolitical issues. A stronger U.S. dollar might have adversely impacted its overseas businesses in the to-be-reported quarter.
The Zacks Consensus Estimate for ZBRA’s first-quarter total revenues is currently pegged at $1,374 million, suggesting 2% growth and a 6.3% decline from the year-ago and the quarter-ago reported numbers, respectively.
Earnings Whispers
Our quantitative model does not predict a beat for Zebra this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) increase the odds of an earnings beat, which is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Zebra has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $3.83.
Zebra Technologies Corporation Price and EPS Surprise
Zebra Technologies Corporation price-eps-surprise | Zebra Technologies Corporation Quote
Zacks Rank: Zebra currently carries a Zacks Rank #2.
Stocks to Consider
Here are some companies worth considering as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
IDEX Corporation IEX has an Earnings ESP of +0.93% and a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
IEX’s earnings surprise in the last four quarters was 2.8%, on average, in the past 60 days. IDEX’s earnings estimates have increased 0.9% for 2022. The stock has lost 9% in the past three months.
Stanley Black & Decker, Inc. SWK has an Earnings ESP of +0.18% and a Zacks Rank of 3, currently. SWK delivered a trailing four-quarter earnings surprise of 11.2%, on average.
Earnings estimates of Stanley Black & Decker have increased 0.2% for 2022 in the past 60 days. Its shares have declined 27.2% in the past three months.
AGCO Corporation AGCO has an Earnings ESP of +0.93% and is Zacks #3 Ranked, currently. AGCO’s earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has grown 8.7% in the past three months.
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