Zebra Technologies Q2 Earnings Miss Estimates, Cuts Annual Sales Outlook; Stock Down In Pre-market

(RTTNews) - Automatic identification and data capture products provider Zebra Technologies Corporation (ZBRA) Tuesday reported a profit of $144 million or $2.78 per share for the second quarter compared with a loss of $98 million or $1.87 per share in the same quarter a year ago.

For the full year, the company has lowered its sales outlook.

Excluding one-time items, earnings were $170 million or $3.29 per share, that missed the average estimate of analysts polled by Thomson-Reuters of $3.28 per share. Analysts' estimates typically exclude special items.

Sales for the quarter declined 17.3% to $1.214 billion from $1.468 billion a year ago, impacted primarily by lower sales in the Enterprise Visibility & Mobility segment. The consensus estimate was for $1.31 billion.

For the full year, Zebra Technologies now sees net sales to decrease 20%-23% year-over-over, compared with 2%-6% decline as guided earlier. Analysts on average expect sales to decline 4.90% for the year.

For the third quarter, the company expects sales to decrease between 30% and 35% compared to the prior year. Adjusted earnings per share are expected to be in the range of $0.60 -$1.00.

Analysts expect earnings of $3.77 per share, and a revenue decline of 10.8% for the quarter.

Zebra Technologies shares are down more than 13% in pre-market trading. It closed at $307.96 on Monday, up 2.93%. The stock has been trading in the range of $224.87 - $356.62 in the last 52 weeks.