Zebra Technologies Poised for Strong Q3 Recovery Amid Tangible Products Rebound

Zebra Technologies (NASDAQ: ZBRA) faced a challenging 2023, as high inflation and rising interest rates impacted demand for the company’s core product offerings across key sectors including retail, logistics, manufacturing, and healthcare. The company is known for its products, which include barcode printers, scanners, mobile computers, and workflow optimization software. Macroeconomic headwinds stunted the company’s growth in 2023, with revenues plunging by -21% year-over-year to $4.6 billion and net income sliding to $296 million, a steep -36% decline from the prior year.

In the first quarter of 2024, Zebra continued to face headwinds, however, saw a modest revenue recovery of +0.25% year-over-year in the second quarter. According to Visible Alpha consensus, analysts anticipate a much stronger growth rebound in the upcoming quarters. In 3Q 2024, revenue is estimated to jump +27.4%, driven by a strong +34.1% growth in the company’s tangible products’ revenue. For the full-year, analysts expect revenue to grow by +6% year-over-year, reaching $4.9 billion. Net income is also expected to recover significantly, with forecasts suggesting a +69% year-on-year increase to $501 million.