Zebra Applied sciences Shares Drop Following Q3 Miss; Warns On Close to-Time period Challenges

• Zebra Applied sciences Corp (NASDAQ: ZBRA) reported a third-quarter FY22 web gross sales decline of 4% year-on-year to $1.38 billion, lacking the consensus of $1.48 billion. Consolidated natural web gross sales for the quarter decreased by 3.2%.

• Web gross sales within the Enterprise Visibility & Mobility (EVM) phase fell 9% Y/Y to $963 million. The web gross sales of the asset Intelligence & Monitoring (AIT) phase elevated 9.8% Y/Y to $415 million.

• Margins: The non-GAAP gross margin expanded 70 bps to 45.8%, pushed by EVM.

• The non-GAAP EBITDA margin contracted 60 bps to 21.1%.

• Non-GAAP EPS of $4.12 missed the consensus of $4.54.

• Zebra held $81 million in money and equivalents.

• “We’re recovering from provide chain challenges associated to persistent element shortages and the transition to our new North American distribution middle. These challenges, together with sure giant buyer tasks being deferred, impacted product shipments exiting the quarter, leading to lower-than-expected gross sales and profitability,” mentioned Anders Gustafsson, Chief Govt Officer of Zebra Applied sciences.

• Outlook: Zebra’s This fall web gross sales steerage of $1.44 billion -$1.48 billion was beneath the consensus of $1.54 billion.

• The non-GAAP EPS forecast of $4.50 – $4.80 was beneath the consensus of $5.13.

• In its Q2 report, ZBRA narrowed the vary of its full-year outlook for adjusted web gross sales development to 4% to six% from 2021.

• Worth Motion: ZBRA shares traded decrease by 12.13% at $248.88 on the final test Tuesday.

• Photograph By way of Firm

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