Zebra Technologies beats expectations, raises full-year forecast on demand recovery (updated)

Zebra Technologies

30/07/2024 14:45

(Adds share movement in paragraph 2)
       July 30 (Reuters) - Barcode scanner maker Zebra
Technologies  ZBRA.O  on Tuesday beat estimates for
second-quarter results and raised its full-year forecast, helped
by a steady recovery in demand for its hardware and software
services and products.
    The Lincolnshire, Illinois-based company's shares rose 8.8%
in early trading.
    The company is benefiting from a growth in ecommerce
activity in the retail sector, its largest client, as inventory
of its mobile computing clears and new orders see an uptick. The
company also sees a revival in the healthcare, manufacturing and
logistics sectors.
    Zebra Technologies reported quarterly revenue of $1.22
billion, beating estimates of $1.18 billion, according to LSEG
data.
    The company has raised its 2024 forecast for sales growth to
be between 4% and 7%, from the earlier expectation in the range
between 1% and 5% growth compared with 2023.
    Revenue from its mobile computing and data capture solutions
segment rose 8.6% to $820 million in the second quarter compared
with a year earlier.
    "We returned to growth in enterprise mobile computing across
all our vertical end markets and delivered another quarter of
sequential improvement in profitability," said Bill Burns, CEO
of Zebra Technologies.
    On an adjusted basis, the company earned $3.18 per share,
ahead of estimates of $2.81 per share.
    Zebra Technologies forecast third-quarter net sales to grow
between 25% and 28% compared with a year earlier.
    The company provides IT solutions, hardware products such as
mobile computers and barcode scanners, and software services to
various sectors including healthcare, logistics, retail and
education.

 (Reporting by Priyanka.G in Bengaluru; Editing by Vijay
Kishore)
 ((Priyanka.G@thomsonreuters.com;))