Zebra Technologies (NASDAQ: ZBRA) reported Q2 EPS of $4.57, $0.46 better than the analyst estimate of $4.11. Revenue for the quarter came in at $1.38 billion versus the consensus estimate of $1.35 billion.

"Our exceptional second quarter performance was driven by continued broad-based demand for our solutions and excellent operational execution. Despite ongoing industry-wide supply chain challenges, our team met customers’ mission critical needs, while delivering record sales and profitability that exceeded our outlook,” said Anders Gustafsson, Chief Executive Officer of Zebra Technologies. “While we continue to see extended lead times for certain product components and escalating global shipping costs, we enter the second half of the year with a strong order backlog and a robust pipeline of business which supports the significant increase to our full-year sales outlook. Additionally, we are excited about our entry into vibrant markets that advance our Enterprise Asset Intelligence vision, including our recent launch of fixed industrial scanning & machine vision solutions, as well as our pending acquisition of Fetch Robotics.”

GUIDANCE:

Third Quarter 2021

The company expects third quarter 2021 adjusted net sales to increase 21% to 25% from the third quarter of 2020 as we continue to experience strong broad-based demand for our solutions as the global economy continues to recover from the pandemic. This expectation includes an approximately 3 percentage point additive impact from the Reflexis acquisition and foreign currency translation and reflects industry-wide supply chain challenges.

Adjusted EBITDA margin for the third quarter of 2021 is expected to be approximately 20% to 21%, which includes approximately $45 million of premium freight expense. Non-GAAP earnings per diluted share are expected to be in the range of $3.90 to $4.10. This assumes an adjusted effective tax rate of approximately 18% to 19%.

Full-Year 2021

The Company now expects adjusted net sales to increase 23% to 25% from 2020, which includes an approximately 3 percentage point additive impact from business acquisitions and foreign currency translation and reflects industry-wide supply chain challenges.

Adjusted EBITDA margin is expected to be approximately 22% to 23%, which includes $135-140 million of premium freight expense.

Free cash flow is now expected to be at least $900 million.

The outlook amounts provided above do not include any projected results from the acquisition of Fetch Robotics, which is expected to close in the third quarter of 2021.

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