Barcode scanner maker Zebra sees smaller-than-expected drop in Q1 sales

Zebra Technologies

15/02/2024 14:41

Feb 15 (Reuters) - Barcode scanner maker Zebra
Technologies  ZBRA.O  projected a smaller-than-expected drop in
first-quarter net sales on Thursday, a sign of stabilizing
demand for its products as customers continue to clear existing
inventory.
    Shares of the company rose more than 10% in morning trade.
    Zebra, which counts U.S. Postal Service and Walgreens Boots
Alliance  WBA.O  as its customers, saw improvement in orders as
businesses ramp up their digitization efforts.
    "Entering 2024, distributor inventories are aligned with the
current demand environment. Although we are seeing some
improvement in order activity, we are not yet seeing signs of a
broad market recovery," CEO Bill Burns said in a statement.
    The company expects total charges related to its
cost-cutting measures to be about $130 million, up from the
previously estimated $105 million, and anticipates completing it
by mid-2024.
    Zebra expects first-quarter net sales to decline between 17%
and 20% from a year earlier, compared with estimates of a
decline of about 24%, according to LSEG data.
    The maker of handheld computers expects 2024 net sales to be
in the range between of 1% decline and 3% growth compared with
2023.
    Zebra posted fourth-quarter net sales of $1.01 billion,
beating analysts' average estimate of $999.4 million.
    Excluding items, its earnings slumped 64% from a year
earlier to $1.71 per share, but exceeded the estimate of $1.66
per share.
    Rival Honeywell International  HON.O  forecast a weak first
quarter after falling short of sales estimates for the fourth
quarter earlier this month.

 (Reporting by Jaspreet Singh in Bengaluru; Editing by Dhanya
Ann Thoppil and Vijay Kishore)
 ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))