Zebra Technologies, a maker of enterprise systems for managing inventory and assets, on Tuesday narrowly beat Wall Street's targets for the first quarter but lowered its full-year outlook. ZBRA stock fell on the news.
The Lincolnshire, Ill.-based company earned an adjusted $3.94 a share on sales of $1.41 billion in the March quarter. Analysts polled by FactSet had expected Zebra Technologies to earn $3.92 a share on sales of $1.4 billion. On a year-over-year basis, Zebra earnings and sales both fell 2%.
For the full year, Zebra now expects sales to decline 2% to 6% compared with 2022. It previously forecast sales in the range of a 3% decline to 1% growth.
"Our revised full-year outlook reflects tighter enterprise customer capex and project deferrals in this uncertain macroeconomic environment and moderating demand through distribution," Chief Executive Bill Burns said in a news release.
He added, "While customer spend is pressured near term, we are well positioned to benefit from secular trends to digitize and automate workflows across our served markets."
ZBRA Stock Retreats After Report
On the stock market today, ZBRA stock dropped 11.1% to close at 255.44. During the regular session Monday, ZBRA stock dipped 0.2% to close at 287.45.
For the current quarter, Zebra predicted that sales would decline 9% to 11% from the same period last year. Wall Street had been modeling sales to fall 4% to $1.41 billion.
Zebra Technologies makes rugged mobile computers, bar code scanners and printers, and RFID tracking tags that link to enterprise systems to enable real-time visibility of inventory and other assets. It offers systems for retail, e-commerce, health care, manufacturing, transportation and other industries.
"We're still very excited about the long-term growth aspects of the business," Chief Financial Officer Nathan Winters told Investor's Business Daily. "Where we're seeing the pressure now is on net new projects. Customers are clearly being more conservative in their capital deployments."
Logitech Beats Views, Maintains Outlook
Elsewhere in the computer hardware and peripherals market, Logitech International late Monday beat estimates for its fiscal fourth quarter ended March 31.
Logitech earned an adjusted 50 cents a share on sales of $960 million in the March quarter. Analysts had expected earnings of 42 cents a share on sales of $939 million. However, on a year-over-year basis, Logitech earnings fell 38% while sales declined 22%.
Also, Logitech reiterated its outlook for the first half of fiscal 2024.
Logitech stock rose 3.9% to 63.33 on Tuesday.
ZBRA stock has an IBD Composite Rating of 68 out of 99, according to IBD Stock Checkup. Meanwhile, Logitech stock has a Composite Rating of 86.
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