Zebra Now Expects 2017 Organic Net Sales Growth At Higher End Of Prior Outlook

(RTTNews) - Zebra Technologies Corp. (ZBRA) announced the company expects approximately 3% to 6% organic net sales growth for the full year 2017, which is at the higher end of prior outlook. The company said the expectation excludes a 3 percentage point adverse impact from wireless LAN business sales and assumes minimal foreign currency impact. The company expects organic net sales growth to moderate through 2017 considering year-over-year comparisons. Adjusted EBITDA margin is expected to be in the range of 18% to 19% for the full year 2017, an improvement compared to the full year 2016.

The company expects third-quarter 2017 adjusted net sales to change approximately between a decline of 1% to an increase of 2% from adjusted net sales of $906 million in the third quarter of 2016. The company expects organic net sales growth of approximately 2% to 5% in the third quarter. The expectation excludes a 4 percentage point adverse impact from wireless LAN business sales and 1 percentage point positive impact from foreign currency translation. Adjusted EBITDA margin is expected to be approximately 18% to 19% for the third quarter 2017. Non-GAAP earnings per share are expected to be in the range of $1.65 to $1.85.

Non-GAAP net income for the second quarter of 2017 was $80 million, or $1.51 per share, compared with $59 million, or $1.17 per share, for the second quarter of 2016. Adjusted EBITDA for the second quarter of 2017 was $159 million, or 17.7% of adjusted net sales compared to $144 million, or 16.3% of adjusted net sales for the second quarter of 2016, primarily due to higher gross profit and lower operating expenses.

Consolidated adjusted net sales were $897 million in the second quarter of 2017 compared to $882 million in the second quarter of 2016, an increase of 1.7%. Consolidated organic net sales growth for the second quarter was 6.4% reflecting growth across all regions, most notably North America and Latin America. Second-quarter year-over-year organic net sales grew 7.9% in the Enterprise segment and 3.7% in the Legacy Zebra segment.