Overview
- The company, which reported results Tuesday, posted adjusted earnings of $6.35 per share and $1.56 billion in revenue, beating analyst forecasts by a wide margin.
- Shares jumped more than 20% to fresh 52-week highs as management raised full-year adjusted earnings guidance to about $21 per share and boosted free cash flow expectations above $1 billion.
- Adjusted margins expanded sharply in the quarter, helped by a $73 million tariff recovery, of which only $41 million has been received in cash so far, making part of the profit gain non-recurring.
- Zebra said memory shortages and higher memory costs will be roughly a $120 million headwind this year, and it is qualifying new suppliers and raising prices to protect margins and speed shipments.
- Demand was broad across scanners, mobile computers, printers, RFID and machine vision for retail, logistics, healthcare and manufacturing, giving Zebra a multi-billion-dollar market runway even if supply limits push some revenue into later quarters.