Yahoo Finance Bear of the Day: Zebra Technologies (ZBRA)
Zebra Technologies Corporation’s ZBRA earnings outlook has continued to plummet over the last year-plus. Zebra’s near-term outlook turned even worse after it offered up downbeat guidance on August 1.
ZBRA shares have tumbled 50% during the last two years and it is currently trading below some key moving averages.
Zebra 101
Zebra is a technology firm focused on empowering frontline workers and companies for the modern, digital-everything world via handheld computers, wearables, and more everywhere from retail and warehouses to healthcare and beyond. ZBRA’s tech, which includes hardware, software, and services, remains vital and it has posted a solid stretch of revenue growth.
Zebra is, however, facing near team headwinds. CEO Bill Burns said in prepared Q2 remarks that ZRBA was “impacted by softening demand and more cautious customer spending, particularly in our retail and logistics end markets, and by distributor destocking.”
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The company remains upbeat about its long-term prospects and it is actively rolling out cost-cutting measures. But Zebra’s FY23 consensus earnings estimate has dropped by 30% since its August 1 earnings release, with its EPS estimate for FY24 down 28%.
Zacks estimates currently call for Zebra’s adjusted 2023 earnings to sink 38% YoY to $10.91 a share on 22% lower sales to hit $4.52 billion. Plus, ZBRA’s most accurate/most recent EPS estimates for both FY23 and FY24 came in even lower.
Bottom Line
Zebra’s downward earnings revisions help it land a Zacks Rank #5 (Strong Sell) right now. On top of that, ZBRA lands “F” grades across the board for Value, Growth, and Momentum in our Zacks Style Scores system.
Zerba shares have dropped by 50% in the last two years vs. the Zacks Industrial Products sector’s 5% decline. ZBRA is currently trading way below its 50-day and 200-day moving averages, as well as its 200-week and 50-week moving averages. Therefore, it is likely best for investors with near-term outlooks to avoid trying to possibly catch a falling knife.
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Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report
