Zebra Technologies Corp ( ZBRA )  reported a fiscal first-quarter 2024 net sales growth of 16.4% year-on-year to $1.18 billion, beating the consensus of $1.15 billion. 

The adjusted EPS of $2.84 beat the consensus of $2.45. The stock price moved higher after the results.

Consolidated organic net sales for the quarter decreased by 16.8% Y/Y. 

Net sales in the Enterprise Visibility & Mobility (EVM) segment fell 11.3% Y/Y to $783 million. The net sales of the Asset Intelligence and Tracking (AIT) segment decreased by 24.9% Y/Y to $392 million.

The adjusted gross margin improved by 60 bps to 48.1%. This was primarily due to lower premium supply chain costs and improved software and service margins. 

The adjusted EBITDA margin declined by 150 bps to 19.9%, primarily due to higher operating expenses.

Zebra held $127 million in cash and equivalents as of March 30, 2024.

Zebra reiterated the 2022 Productivity Plan and Voluntary Retirement Plan will entail charges of $130 million, with net annualized expense savings of $120 million.

“While our first quarter results continued to be impacted by broad-based softness across our end markets, we realized improvement in demand from the fourth quarter of 2023,” said Bill Burns, Chief Executive Officer of Zebra Technologies ( ZBRA ).

Burns credits the “improvement in profitability” to cost restructuring and an improved gross margin.

Outlook: Zebra expects second-quarter net sales to decrease between 1% and 5% Y/Y or net sales of $1.153 billion – $1.202 billion compared to the consensus of $1.14 billion. It projects an adjusted EPS of $2.60 – $2.90 versus the street consensus of $2.56.

Zebra expects FY24 net sales growth of  between 1% and 5% (prior (1)% – 3%) Y/Y or net sales of $4.630 billion – $4.813 billion (prior $4.538 billion – $4.722 billion) compared to the consensus of $4.680 billion. It projected adjusted EPS of $11.25 – $12.25 versus consensus of $11.12.

Zebra Technologies ( ZBRA ) stock gained over 4% in the last 12 months. Investors can gain exposure to the stock via ProShares Big Data Refiners ETF ( DAT ) and ProShares S&P Kensho Smart Factories ETF ( MAKX ) .

Price Action: ZBRA shares traded higher by 5.00% at $315.00 premarket on the last check Tuesday.

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