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Lincolnshire, Illinois-based Zebra Technologies Corporation (ZBRA) provides Enterprise Asset Intelligence (EAI) solutions in the Automatic Identification and Data Capture (AIDC) industry. Valued at a market cap of $11.7 billion, the company designs, manufactures, and sells a broad range of AIDC products, including mobile computers, barcode scanners and imagers, RFID readers, specialty printers, and related software applications. It is scheduled to announce its fiscal Q1 earnings for 2025 before the market opens on Tuesday, Apr. 29.
Ahead of this event, analysts expect this tech company to report a profit of $3.12 per share, up 26.3% from $2.47 per share in the year-ago quarter. The company has topped Wall Street's earnings estimates in three of the last four quarters, while missing on another occasion. In Q4 2024, ZBRA’s EPS of $3.62 fell short of the forecasted figure by 1.4%.
For fiscal 2025, analysts expect Zebra Technologies to report a profit of $13.36 per share, up 12.8% from $11.84 in fiscal 2024. Furthermore, its EPS is expected to grow 15.6% year over year to $15.45 in fiscal 2026.
ZBRA has fallen almost 19.9% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 4.4% gain, and the Technology Select Sector SPDR Fund’s (XLK) 3.9% decline over the same time frame.
On Feb. 13, ZBRA’s shares crashed 8.4% after its Q4 earnings release despite delivering a solid performance. The company posted adjusted earnings of $4 per share and revenue of $1.3 billion, both exceeding analyst estimates. Moreover, compared to the prior-year quarter, its adjusted EPS surged 133.9% and revenue increased 32.2%, driven by a robust 31.6% growth in organic sales. This momentum was supported by strong year-end spending by its North American retail customers.
Looking ahead, the company expects solid growth in Q1 2025, supported by a healthy order backlog. However, ZBRA issued a cautious full-year 2025 outlook, citing uncertainties surrounding global trade, geopolitical tensions, and macroeconomic conditions. This cautious guidance may have weighed on investor sentiment, contributing to the stock’s decline.
Wall Street analysts are moderately optimistic about ZBRA’s stock, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, eight recommend "Strong Buy," one advises a “Moderate Buy,” and seven suggest “Hold.” The mean price target for ZBRA is $366.43, which indicates a notable 63% potential upside from the current levels.
