Zebra Technologies beats expectations, raises full-year forecast on demand recovery

(Reuters) -Barcode scanner maker Zebra Technologies on Tuesday beat estimates for second-quarter results and raised its full-year forecast, helped by a steady recovery in demand for its hardware and software services and products.

The Lincolnshire, Illinois-based company's shares rose 8.8% in early trading.

The company is benefiting from a growth in ecommerce activity in the retail sector, its largest client, as inventory of its mobile computing clears and new orders see an uptick. The company also sees a revival in the healthcare, manufacturing and logistics sectors.

Zebra Technologies reported quarterly revenue of $1.22 billion, beating estimates of $1.18 billion, according to LSEG data.

The company has raised its 2024 forecast for sales growth to be between 4% and 7%, from the earlier expectation in the range between 1% and 5% growth compared with 2023.

Revenue from its mobile computing and data capture solutions segment rose 8.6% to $820 million in the second quarter compared with a year earlier.

"We returned to growth in enterprise mobile computing across all our vertical end markets and delivered another quarter of sequential improvement in profitability," said Bill Burns, CEO of Zebra Technologies.

On an adjusted basis, the company earned $3.18 per share, ahead of estimates of $2.81 per share.

Zebra Technologies forecast third-quarter net sales to grow between 25% and 28% compared with a year earlier.

The company provides IT solutions, hardware products such as mobile computers and barcode scanners, and software services to various sectors including healthcare, logistics, retail and education.

(Reporting by Priyanka.G in Bengaluru; Editing by Vijay Kishore)