Zebra Technologies Stock Surges On Second-Quarter Beat, Raise

Enterprise asset tracking firm Zebra Technologies on Tuesday posted better-than-expected sales and earnings for the June quarter and guided analysts higher for the September quarter, giving its stock a boost.

The post Zebra Technologies Stock Surges On Second-Quarter Beat, Raise appeared first on Investor's Business Daily.

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Enterprise asset tracking firm Zebra Technologies (ZBRA) on Tuesday posted better-than-expected sales and earnings for the June quarter and guided analysts higher for the September quarter, giving its stock a huge boost.

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Zebra shares rocketed 17.2% to 166.62 on the stock market today. The stock hit a record high intraday of 167.24. Zebra ranks No. 45 on the IBD 50 list of top-performing growth stocks.

The Lincolnshire, Ill.-based company earned an adjusted $2.48 a share in the second quarter, up 64% year over year. Sales climbed 13% to $1.012 billion. Analysts expected it to earn $2.23 a share on sales of $989 million.

For the third quarter, Zebra Technologies guided to adjusted earnings per share of $2.60 on sales of $1.061 billion, based on the midpoint of its forecast. Wall Street was modeling $2.37 a share in earnings and $988 million in sales.

Zebra Technologies Boosts 2018 Sales Outlook

It also raised its outlook for the full year. Zebra now expects sales to grow 10% to 12% in 2018. It previously expected a gain of 6% to 9%.

"Our second-quarter results were driven by strong growth from our product and service offerings and disciplined operational execution," Chief Executive Anders Gustafsson said in a news release. "Given the strength of our results, we are raising our full-year outlook for sales growth and free cash flow. We continue to deliver digital innovation that enables our customers to compete effectively in today's on-demand economy."

Zebra makes rugged mobile computers, RFID tracking chips, and bar code scanners and printers enhanced with software and services to enable real-time enterprise visibility of inventory and other assets. It offers products and services for retail, health care, manufacturing, transportation and other industries.

Q2 Growth Broad-Based

In an interview with Investor's Business Daily, Zebra Chief Financial Officer Olivier Leonetti said the company's gains came from across its business segments last quarter.

"This was a broad-based performance across regions, across products, across verticals," he said. "Clearly today our company is uniquely positioned to satisfy the requirements of the on-demand economy."

The company's guidance does not include its pending acquisition of Xplore Technologies (XPLR). Zebra expects that $90 million deal to close this quarter. Austin, Texas-based Xplore makes rugged mobile computers for industrial, enterprise, government, and field-service organizations.

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