Zebra Technologies (ZBRA) Tops Q4 EPS by 66c, Revenues Beat; Offers 1Q EPS Guidance Above Consensus

February 11, 2021 6:35 AM EST
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Price: $507.51 +0.92%

EPS Growth %: +25.3%

Financial Fact:
Net income: -1.61

Today's EPS Names:
JFIN, JKS, More
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Zebra Technologies (NASDAQ: ZBRA) reported Q4 EPS of $4.46, $0.66 better than the analyst estimate of $3.80. Revenue for the quarter came in at $1.31 billion versus the consensus estimate of $1.25 billion.

Fourth-Quarter Financial Highlights

  • Net sales of $1,308 million; year-over-year increase of 9.7%
  • Net income of $199 million and net income per diluted share of $3.70, year-over-year increases of 17.8% and 19.4%, respectively
  • Non-GAAP diluted EPS increased 25.3% year-over-year to $4.46
  • Adjusted EBITDA increased 20.8% year-over-year to $308 million

“I'm proud of our team's exceptional fourth quarter performance to close out a challenging 2020. We achieved record quarterly sales, EBITDA, earnings per share, and free cash flow, significantly exceeding our outlook," said Anders Gustafsson, Chief Executive Officer of Zebra Technologies. "We entered the new year with a strong order backlog as small business demand recovers and business with our large customers continues to be robust. This positions us well for double-digit sales growth for the first quarter and full year 2021. We continue to be excited about our unique capability to digitize and automate our customers’ workflows in an increasingly on-demand economy."

GUIDANCE:

Zebra Technologies sees Q1 2021 EPS of $4.30-$4.50, versus the consensus of $3.17.

First Quarter 2021

  • The company expects adjusted net sales to increase 25% to 29% compared to the first quarter of 2020 as the global economy continues to recover and we realize pent up demand from many of our customers. This expectation includes an approximately 300 to 350 basis point additive impact from the Reflexis acquisition and foreign currency translation.
  • Adjusted EBITDA margin is expected to be slightly higher than 23%, which includes $10 million of premium freight expense. Non-GAAP earnings per diluted share are expected to be in the range of $4.30 to $4.50. This assumes an adjusted effective tax rate between 17% and 18%.

Full-Year 2021

  • The Company expects adjusted net sales to increase 10% to 14% from 2020, which includes an approximately 3 percentage point additive impact from the Reflexis acquisition and foreign currency translation.
  • Adjusted EBITDA margin is expected to be between 21% and 22%.
  • Free cash flow is expected to be at least $700 million.

For earnings history and earnings-related data on Zebra Technologies (ZBRA) click here.



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