Zebra Technologies (ZBRA), a maker of enterprise systems for tracking inventory and other important assets, on Tuesday beat Wall Street’s targets for the first quarter. It also guided higher for the current quarter and full year. ZBRA stock was not active in early trading.
The Lincolnshire, Ill.-based company earned an adjusted $4.79 a share on sales of $1.35 billion in the March quarter. Analysts expected Zebra earnings of $4.34 a share on sales of $1.33 billion. On a year-over-year basis, Zebra earnings rose 79% while sales climbed 28%.
For the second quarter, Zebra expects to earn an adjusted $4.10 a share on sales of $1.34 billion, based on the midpoint of its outlook. That would translate to year-over-year growth of 70% in earnings and 40% in sales. Analysts were expecting Zebra earnings of $3.62 a share on sales of $1.25 billion.
For the full year, Zebra forecast sales to increase 18% to 22% from 2020. Wall Street was modeling Zebra sales to grow 13.7% to $5.07 billion in 2021.
ZBRA Stock Flat Despite ‘Exceptionally Strong’ Outlook
“We enter Q2 with a strong order backlog as we see global business demand recover and customers prioritizing spending on our solutions,” Chief Executive Anders Gustafsson said in a news release.
He added, “This momentum drives our exceptionally strong Q2 sales growth expectation, and coupled with our encouraging pipeline of business, enables us to raise our full-year 2021 outlook for both sales and profitability.”
In premarket trading on the stock market today, ZBRA stock was unchanged at 479.05.
Zebra Stock Suffered Failed Breakout
On April 19, ZBRA stock tried to break out from a cup base at a buy point of 516.88, according to IBD MarketSmith charts. However, trading volume was 55% below average, a sign that the breakout lacked conviction. ZBRA stock notched a record high of 518.66 before reversing and ending the day 0.8% lower than the prior close.
Zebra makes rugged mobile computers, bar code scanners and printers, and RFID tracking tags that link to enterprise systems to enable real-time visibility of inventory and other assets. It offers systems for retail, health care, manufacturing, transportation and other industries.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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