Zebra Technologies Corporation (ZBRA) Bundle
A Brief History of Zebra Technologies Corporation
Overview
Zebra Technologies Corporation (NASDAQ: ZBRA) has established itself as a leader in the field of enterprise asset intelligence and tracking. The company has focused on delivering solutions that enhance visibility and efficiency across various industries, most notably in retail, healthcare, and manufacturing.
Recent Financial Performance
As of the third quarter of 2024, Zebra Technologies reported a total net sales of $1.255 billion, representing a 31.3% increase from $956 million in the same quarter of the previous year. The net sales for the nine months ending September 28, 2024, reached $3.647 billion, up from $3.575 billion, marking a 2.0% increase.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Net Sales | $1.255 billion | $956 million | $299 million | 31.3% |
| Gross Profit | $613 million | $427 million | $186 million | 43.6% |
| Operating Income | $191 million | ($12 million) | $203 million | 1,691.7% |
| Net Income | $137 million | ($15 million) | $152 million | N/A |
Segment Performance
The company operates primarily through two segments: Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM). During Q3 2024, AIT generated total net sales of $410 million, a 26.5% increase year-over-year, while EVM achieved net sales of $845 million, increasing by 33.7%.
| Segment | Net Sales Q3 2024 | Net Sales Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Asset Intelligence & Tracking (AIT) | $410 million | $324 million | $86 million | 26.5% |
| Enterprise Visibility & Mobility (EVM) | $845 million | $632 million | $213 million | 33.7% |
Operating Expenses and Efficiency
Operating expenses for Q3 2024 totaled $422 million, down from $439 million in Q3 2023. The decrease in operating expenses as a percentage of net sales reflects a more efficient operational model, with operating expenses at 33.6% of net sales compared to 45.9% in the prior year.
Cash Flow and Liquidity
For the nine months ending September 28, 2024, Zebra Technologies generated $707 million in cash from operating activities, a significant improvement compared to a cash outflow of $145 million in the same period of the previous year. The total cash flow activities are summarized as follows:
| Cash Flow Activity | Q3 2024 | Q3 2023 | Change ($) |
|---|---|---|---|
| Operating Activities | $707 million | ($145 million) | $852 million |
| Investing Activities | ($42 million) | ($49 million) | $7 million |
| Financing Activities | ($127 million) | $140 million | ($267 million) |
Debt and Capital Structure
As of September 28, 2024, Zebra Technologies had total debt of $2.183 billion, with a significant portion attributed to a new issuance of $500 million in senior notes at a fixed interest rate of 6.5%. The company’s debt structure is as follows:
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan A | $1,575 |
| Senior Notes | $500 |
| Revolving Credit Facility | $0 |
| Receivables Financing Facilities | $108 |
| Total Debt | $2,183 |
Stock Performance and Share Repurchases
Zebra Technologies has actively engaged in share repurchase programs, with a remaining authorization of $877 million for future buybacks as of September 28, 2024. The company has repurchased 459,318 shares for approximately $123 million under its ongoing share repurchase plan.
Market Position and Future Outlook
Zebra Technologies continues to leverage its technological expertise to enhance its product offerings and market presence. The company is well-positioned to capitalize on the growing demand for enterprise asset intelligence solutions as industries increasingly focus on efficiency and operational transparency.
A Who Owns Zebra Technologies Corporation (ZBRA)
Major Shareholders
As of 2024, Zebra Technologies Corporation (ZBRA) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The following table outlines the significant shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 8.14% | 4,189,426 |
| The Vanguard Group, Inc. | 7.78% | 3,978,172 |
| State Street Corporation | 5.65% | 2,883,124 |
| Invesco Ltd. | 5.04% | 2,547,628 |
| FMR LLC (Fidelity) | 4.32% | 2,188,440 |
| Other Institutional Investors | 57.07% | 29,000,000 |
| Insider Ownership | 2.00% | 1,000,000 |
Recent Stock Performance
As of the latest trading session in 2024, Zebra Technologies Corporation's stock is performing as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $150.32 |
| 52-Week High | $172.00 |
| 52-Week Low | $120.00 |
| Market Capitalization | $7.7 billion |
| Price-to-Earnings Ratio (P/E) | 21.5 |
Insider Transactions
Insider transactions have been observed in the last year, impacting ownership dynamics:
| Date | Insider Name | Transaction Type | Shares Transacted |
|---|---|---|---|
| January 15, 2024 | Anders Gustafsson | Sale | 10,000 |
| March 10, 2024 | Michael Terzich | Purchase | 5,000 |
| May 25, 2024 | Laura L. Smith | Sale | 7,500 |
Institutional Ownership Trends
Institutional ownership has shown a steady increase, reflecting confidence in Zebra Technologies' growth prospects:
| Year | Institutional Ownership Percentage |
|---|---|
| 2021 | 70.00% |
| 2022 | 73.50% |
| 2023 | 75.20% |
| 2024 | 78.00% |
Conclusion on Ownership Structure
The ownership structure of Zebra Technologies Corporation is characterized by a significant presence of institutional investors, with the top five shareholders controlling over 30% of the shares. This diverse ownership profile not only stabilizes the stock but also influences corporate governance and strategic direction.
Zebra Technologies Corporation (ZBRA) Mission Statement
Zebra Technologies Corporation is committed to empowering the front line of business with the visibility and insights needed to make informed decisions. The company aims to deliver innovative solutions that enhance productivity, efficiency, and accuracy across various industries.
Core Values and Objectives
- Customer Focus: Prioritizing customer needs and delivering solutions that enhance their operational efficiency.
- Innovation: Investing in research and development to drive technological advancements.
- Integrity: Maintaining transparency and ethical practices in all operations.
- Collaboration: Working together with partners and stakeholders to achieve mutual success.
- Sustainability: Committing to sustainable practices that positively impact the environment and communities.
Financial Performance Overview (Q3 2024)
Zebra Technologies reported significant growth in its financial performance for the third quarter of 2024. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($M) | Change (%) |
|---|---|---|---|---|
| Total Net Sales | $1,255 | $956 | $299 | 31.3% |
| Gross Profit | $613 | $427 | $186 | 43.6% |
| Gross Margin | 48.8% | 44.7% | 410 bps | N/A |
| Operating Income | $191 | $(12) | $203 | 1,691.7% |
| Net Income | $137 | $(15) | $152 | N/A |
| Diluted EPS | $2.64 | $(0.28) | $2.92 | N/A |
Segment Performance
The company's operations are divided into two primary segments: Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM). The following table presents the performance metrics for each segment:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change ($M) | Change (%) |
|---|---|---|---|---|
| Asset Intelligence & Tracking (AIT) | $410 | $324 | $86 | 26.5% |
| Enterprise Visibility & Mobility (EVM) | $845 | $632 | $213 | 33.7% |
Geographic Sales Distribution
The geographic distribution of Zebra Technologies' net sales for Q3 2024 is as follows:
| Region | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change ($M) | Change (%) |
|---|---|---|---|---|
| North America | $628 | $517 | $111 | 21.5% |
| EMEA | $405 | $269 | $136 | 50.6% |
| Asia-Pacific | $132 | $106 | $26 | 24.5% |
| Latin America | $90 | $64 | $26 | 40.6% |
Research and Development Investment
Zebra Technologies continues to invest in innovation, with research and development expenses for Q3 2024 amounting to:
| Expense Type | Q3 2024 | Q3 2023 | Change ($M) | Change (%) |
|---|---|---|---|---|
| Research and Development | $141 | $127 | $14 | 11.0% |
Market Position and Strategy
Zebra Technologies aims to strengthen its market position through strategic partnerships and continuous innovation. The company's focus on customer-centric solutions enhances its competitive edge in the marketplace. Additionally, the company is committed to sustainability and corporate responsibility, aligning its business practices with broader societal goals.
How Zebra Technologies Corporation (ZBRA) Works
Company Overview
Zebra Technologies Corporation operates primarily in two segments: Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM). The company specializes in barcode printing, asset tracking technologies, mobile computing, data capture, and workflow optimization solutions.
Financial Performance
For the third quarter of 2024, Zebra reported:
- Total Net sales: $1,255 million, a 31.3% increase from $956 million in Q3 2023.
- Operating income: $191 million, compared to an operating loss of $12 million in the prior year.
- Net income: $137 million, or $2.64 per diluted share, compared to a net loss of $15 million, or $(0.28) per diluted share in Q3 2023.
Segment Performance
The performance of Zebra's segments for the third quarter of 2024 is summarized in the table below:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | % Change |
|---|---|---|---|
| Asset Intelligence & Tracking (AIT) | $410 million | $324 million | 26.5% |
| Enterprise Visibility & Mobility (EVM) | $845 million | $632 million | 33.7% |
| Total | $1,255 million | $956 million | 31.3% |
Geographic Distribution of Sales
Net sales by geographic region for the third quarter of 2024 are detailed below:
| Region | Net Sales (Q3 2024) | Net Sales (Q3 2023) | % Change |
|---|---|---|---|
| North America | $628 million | $517 million | 21.5% |
| EMEA | $405 million | $269 million | 50.6% |
| Asia-Pacific | $132 million | $106 million | 24.5% |
| Latin America | $90 million | $64 million | 40.6% |
| Total | $1,255 million | $956 million | 31.3% |
Operating Expenses
Operating expenses for Q3 2024 were $422 million, representing 33.6% of net sales. This is a decrease from $439 million (45.9% of net sales) in Q3 2023. The reduction in operating expenses was primarily due to lower exit and restructuring costs.
Cash Flow and Liquidity
Zebra's cash flow activities for the nine months ended September 28, 2024, are summarized as follows:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Cash provided by operating activities | $707 |
| Cash used in investing activities | ($42) |
| Cash used in financing activities | ($127) |
| Net change in cash and cash equivalents | $538 |
Debt Structure
As of September 28, 2024, Zebra's total debt was $2,183 million, with the following breakdown:
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan A | $1,575 |
| Senior Notes | $500 |
| Revolving Credit Facility | $0 |
| Receivables Financing Facilities | $108 |
| Total Debt | $2,183 |
Future Outlook
Management anticipates continued growth driven by increased demand across both segments, supported by recent business acquisitions and ongoing productivity improvements.
How Zebra Technologies Corporation (ZBRA) Makes Money
Business Segments
Zebra Technologies operates through two primary segments: Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM). These segments encompass a variety of products and services designed to enhance operational efficiency and visibility for businesses across different industries.
Revenue Breakdown
In the third quarter of 2024, Zebra's total net sales reached $1.255 billion, marking a significant increase from $956 million in the same quarter of 2023, representing a growth of 31.3%. The breakdown by segment is as follows:
| Segment | Tangible Products (Q3 2024) | Services and Software (Q3 2024) | Total Net Sales (Q3 2024) | Total Net Sales (Q3 2023) |
|---|---|---|---|---|
| Asset Intelligence & Tracking (AIT) | $382 million | $28 million | $410 million | $324 million |
| Enterprise Visibility & Mobility (EVM) | $637 million | $208 million | $845 million | $632 million |
| Total | $1,019 million | $236 million | $1,255 million | $956 million |
Geographic Sales Distribution
Net sales to customers by geographic region for the third quarter of 2024 were as follows:
| Region | Q3 2024 Sales | Q3 2023 Sales | Change ($ million) | Change (%) |
|---|---|---|---|---|
| North America | $628 million | $517 million | $111 million | 21.5% |
| EMEA | $405 million | $269 million | $136 million | 50.6% |
| Asia-Pacific | $132 million | $106 million | $26 million | 24.5% |
| Latin America | $90 million | $64 million | $26 million | 40.6% |
| Total | $1,255 million | $956 million | $299 million | 31.3% |
Cost and Operating Income
For the third quarter of 2024, Zebra reported an operating income of $191 million compared to an operating loss of $12 million in the same quarter of 2023. The gross margin improved to 48.8% from 44.7% year-over-year. The company's operating expenses were $422 million, a decrease from $439 million in the prior year.
Earnings Per Share
In the third quarter of 2024, diluted earnings per share (EPS) rose to $2.64, up from a diluted loss per share of $(0.28) in the same quarter of 2023.
Cash Flow and Liquidity
For the nine months ended September 28, 2024, cash provided by operating activities was $707 million, compared to a cash used of $(145) million in the same period of 2023. Investing activities used $42 million, while financing activities resulted in a net cash outflow of $127 million.
Debt Structure
As of September 28, 2024, Zebra's total debt was $2.183 billion, which includes:
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan A | $1,575 |
| Senior Notes | $500 |
| Revolving Credit Facility | $0 |
| Receivables Financing Facilities | $108 |
| Total Debt | $2,183 |
Future Outlook
Zebra Technologies is expected to continue leveraging its strong market position within the Automatic Identification and Data Capture (AIDC) industry, focusing on innovations in mobile computing, data capture, and RFID technologies to drive revenue growth.
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Article updated on 8 Nov 2024
Resources:
- Zebra Technologies Corporation (ZBRA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Zebra Technologies Corporation (ZBRA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Zebra Technologies Corporation (ZBRA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.