Zebra Technologies Announces Third-Quarter 2019 Results

Third-Quarter Financial Highlights

  • Third-quarter net sales of $1,130 million; year-over-year growth of 3.5%
  • Net income of $136 million and net income per diluted share of $2.50
  • Non-GAAP diluted EPS increased 19.1% year-over-year to $3.43
  • Adjusted EBITDA increased 11.7% year-over-year to $257 million; and adjusted EBITDA margin expanded 160 bps year-over-year to 22.7%

LINCOLNSHIRE, Ill.--(BUSINESS WIRE)-- Zebra Technologies Corporation (NASDAQ: ZBRA), an innovator at the edge of the enterprise with solutions and partners that enable businesses to gain a performance edge, today announced results for the third quarter ended September 28, 2019.

"In the third quarter our team executed well, drove broad-based productivity improvements, and delivered record earnings per share, which exceeded our guidance range. Sales growth in North America and EMEA was partially offset by a softer spending environment in China,” said Anders Gustafsson, Chief Executive Officer of Zebra Technologies. “Our team continues to win business with a broad range of leading enterprises as evidenced by our recently announced multi-year agreement with the United States Postal Service. Our value proposition and industry-leading portfolio of solutions are resonating with customers, providing confidence in a solid finish to the year. We continue to invest in our Enterprise Asset Intelligence vision, broadening our capabilities as a solutions provider in vibrant markets."

$ in millions, except per share amounts

3Q19

3Q18

Change

Select reported measures:

     

Net sales

$

1,130

 

$

1,092

 

3.5

%

Gross profit

535

 

505

 

5.9

%

Net income

136

 

127

 

7.1

%

Net income per diluted share

$

2.50

 

$

2.34

 

6.8

%

       

Select Non-GAAP measures:

     

Organic net sales growth

   

3.0

%

Adjusted gross profit

539

 

507

 

6.3

%

Adjusted gross margin

47.7

%

46.4

%

130 bps

Adjusted EBITDA

257

 

230

 

11.7

%

Adjusted EBITDA margin

22.7

%

21.1

%

160 bps

Non-GAAP net income

$

187

 

$

156

 

19.9

%

Non-GAAP earnings per diluted share

$

3.43

 

$

2.88

 

19.1

%

Reported (GAAP) results

Net sales were $1,130 million in the third quarter of 2019 compared to $1,092 million in the third quarter of 2018. Net sales in the Enterprise Visibility & Mobility ("EVM") segment were $757 million in the third quarter of 2019 compared with $739 million in the third quarter of 2018. Asset Intelligence & Tracking ("AIT") segment net sales were $373 million in the third quarter of 2019 compared to $353 million in the prior year period. Third-quarter 2019 gross profit was $535 million compared to $505 million in the comparable prior year period. Net income for the third quarter of 2019 was $136 million, or $2.50 per diluted share, compared to net income of $127 million, or $2.34 per diluted share, for the third quarter of 2018.

Adjusted (Non-GAAP) results  ... (click to get the full release)

 

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