Zebra Technologies cuts FY23 outlook to reflect macro headwinds,…

Zebra Technologies cuts FY23 outlook to reflect macro headwinds,…

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  • Zebra Technologies Corp ZBRA reported a 1.9% year-over-year decline in net sales to $1.405 billion in the first quarter of FY23, beating the $1.4 trillion consensus. Consolidated organic net sales for the quarter declined 0.3%.
  • Net revenue in the Enterprise Visibility & Mobility (EVM) segment fell 11.9% year over year to $914 million. Net revenue for the Asset Intelligence & Tracking (AIT) segment increased 24.6% year over year to $491 million.
  • Margins: Non-GAAP gross margin increased 290 basis points to 47.5%. Non-GAAP EBITDA margin increased 150 basis points to 21.4%.
  • Non-GAAP EPS of $3.94 beat the consensus of $3.92.
  • Zebra held $85 million in cash and equivalents.
  • “Our revised full-year outlook reflects lower corporate capital spending and project deferrals, as well as slowing demand from distributors, in this uncertain macro environment,” said CEO Bill Burns. “We are mitigating the impact of weaker sales with targeted go-to-market initiatives and cost-increasing efforts.”
  • Outlook: Zebra’s second quarter net sales guidance of $1.307 billion to $1.336 billion compared to consensus of $1.410 billion.
  • Non-GAAP EPS was $3.20 to $3.40, well below the street consensus of $4.17.
  • zebra cut its FY23 Net sales guidance of $5.608-$5.839 billion to $5.434-5.665 billion versus $5.740 billion consensus.
  • ZBRA Price Promotion: Shares of Zebra Technologies are down 10.54% at $257.15 at Tuesday’s publication.



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