Zebra Technologies (NASDAQ: ZBRA) reported Q1 EPS of $4.79, $0.40 better than the analyst estimate of $4.39. Revenue for the quarter came in at $1.35 billion versus the consensus estimate of $1.33 billion.

First-Quarter Financial Highlights

• Net sales of $1,347 million; year-over-year increase of 28.0%
• Net income of $228 million and net income per diluted share of $4.22, year-over-year increases of 156.2% and 155.8%, respectively
• Non-GAAP diluted EPS increases 79.4% year-over-year to $4.79
• Adjusted EBITDA increases 69.7% year-over-year to $341 million

“I'm proud of our teams’ exceptional first quarter performance as we continue to realize a strong recovery from the pandemic. We achieved record quarterly sales and earnings which exceeded our expectations, despite industry supply chain challenges,” said Anders Gustafsson, Chief Executive Officer of Zebra Technologies. “We enter Q2 with a strong order backlog as we see global business demand recover and customers prioritizing spending on our solutions. This momentum drives our exceptionally strong Q2 sales growth expectation, and coupled with our encouraging pipeline of business, enables us to raise our full year 2021 outlook for both sales and profitability. We continue to be excited about our growing portfolio of solutions that digitize and automate our customers’ workflows in an increasingly on-demand economy."

GUIDANCE:

Zebra Technologies sees Q2 2021 EPS of $4.00-$4.20, versus the consensus of $3.62.

• The company expects second-quarter 2021 adjusted net sales to increase 38% to 42% from the second quarter of 2020 as the global economy continues to recover and we continue to realize pent-up demand from many customers. This expectation includes an approximately 450-500 basis point additive impact from the Reflexis acquisition and foreign currency translation, and reflects industry supply chain challenges.
• Adjusted EBITDA margin for the second quarter of 2021 is expected to be in the range of 21% to 22%, which includes approximately $18 million of premium freight expense. Non-GAAP earnings per diluted share are expected to be in the range of $4.00 to $4.20. This assumes an adjusted effective tax rate of approximately 18%.

Full-Year 2021

• The Company now expects adjusted net sales to increase 18% to 22% from 2020, which includes an approximately 3 percentage point additive impact from the Reflexis acquisition and foreign currency translation, and reflects industry supply chain challenges.
• Adjusted EBITDA margin is now expected to be approximately 22% to 23%.
• Free cash flow is now expected to be at least $850 million.

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