Overview

* Zebra Q3 net sales rise 5.2% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats analyst expectations, reflecting strong operational performance

* Company plans $500 mln share repurchase over next 12 months

Outlook

* Company expects Q4 sales growth between 8% and 11%

* Adjusted EBITDA margin for Q4 expected to be around 22%

* Non-GAAP EPS for Q4 expected to be $4.20 to $4.40

Result Drivers

* DEMAND AND TARIFFS - Co attributes strong Q3 results to solid demand and lower-than-expected tariffs, per CEO Bill Burns

* SEGMENT GROWTH - AIT segment sales increased 10.6% yr/yr, contributing significantly to overall sales growth

* ACQUISITION IMPACT - Recent acquisition of Elo Touch Solutions expected to accelerate connected frontline vision

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $1.32 $1.31

bln bln (13

Analysts

)

Q3 Beat $3.88 $3.75

Adjusted (14

EPS Analysts

)

Q3 EPS $1.97

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electronic equipment & parts peer group is "buy"

* Wall Street's median 12-month price target for Zebra Technologies Corp ( ZBRA ) is $375.00, about 17.2% above its October 27 closing price of $310.57

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)