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Valued at a market cap of $15.9 billion, Zebra Technologies Corporation (ZBRA) is a global leader in enterprise asset intelligence and automation solutions. Headquartered in Lincolnshire, Illinois, the company provides innovative barcode printing, RFID, real-time location tracking, and mobile computing solutions that empower businesses to enhance productivity, visibility, and efficiency.
Shares of Zebra Technologies have underperformed the broader market over the past 52 weeks. ZBRA has soared 12.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 17%. Moreover, on a YTD basis, the stock is down 19.7%, compared to SPX’s 1.3% gains.
Zooming in further, ZBRA outperformed compared to the Technology Select Sector SPDR Fund’s (XLK) 11.3% gain over the past 52 weeks.
On Feb. 13, Zebra Technologies' shares dropped 8.4% following its Q4 earnings release, despite strong results. The company’s adjusted earnings surged 133.9% year-over-year to $4 per share, beating Wall Street estimates of $3.95. Revenue grew 32.2% to $1.33 billion, exceeding the $1.31 billion consensus estimate, while adjusted EBITDA jumped 90.3% to $295 million.
Looking ahead, Zebra expects Q1 2025 net sales growth between 8% and 11%, with non-GAAP EPS between $3.50 and $3.70. For the full year 2025, the company forecasts 3% to 7% sales growth and non-GAAP EPS of $14.75 to $15.25, with free cash flow projected to exceed $750 million.
For the current fiscal year, ending in December, analysts expect ZBRA’s EPS to grow 15.8% year over year to $13.71. The company’s earnings surprise history is mixed. It surpassed the consensus estimate in three of the last four quarters while missing on one other occasion.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on eight “Strong Buy,” one “Moderate Buy,” six “Hold,” and one “Strong Sell” rating.
On Feb. 18, Baird lowered its price target on Zebra Technologies from $432 to $380 while maintaining an “Outperform” rating. The firm noted that Q4 performance was solid, but macroeconomic risks introduce caution for 2025.
The mean price target of $393.43 represents a 26.8% upside from ZBRA’s current price levels, while the Street-high price target of $435 suggests an ambitious upside potential of 40.2%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
