Group 1 - Zebra Technologies Corporation (NASDAQ: ZBRA) is a global leader in digitizing and automating workflows to deliver intelligent operations [6][7] - The company will present at two investor conferences: on Nov. 18 at the Stephens NASH25 Conference and on Dec. 1 at the UBS Global Technology and AI Conference [4][6] - Zebra Technologies provides a portfolio of connected frontline, asset visibility, and automation solutions powered by AI, serving various industries including retail, manufacturing, and healthcare [2][6] Group 2 - The company announced strong third-quarter results for 2025, driven by solid demand, lower-than-expected tariffs, and effective execution by its teams [6] - Zebra Technologies completed the acquisition of Elo Touch Solutions, enhancing its capabilities in customer engagement and automation across multiple sectors [7] - The company will release its third-quarter financial results on Oct. 28, 2025, followed by a conference call to discuss these results [8]

Core Insights - Zebra Technologies Corporation's 18th Annual Global Shopper Study reveals the increasing importance of Gen AI and automation in retail, with 87% of retail leaders emphasizing their role in loss prevention [1] Retail Experience and Shopper Satisfaction - Retailers are focusing on connecting physical and digital experiences through intelligent workflows, which can enhance customer satisfaction and reduce loss [2] - Shopper satisfaction for in-store experiences in Europe has risen to 80%, while online satisfaction has decreased to 74% [2][3] Shopper Priorities and Challenges - Shoppers are prioritizing discounts and promotions due to ongoing inflation, with 67% frustrated by out-of-stocks and 72% by locked-up products [3] - Retailers recognize the need for operational excellence, with 85% of European associates reporting challenges in obtaining timely information [4] Technology and Associate Experience - Effective technology is seen as crucial for improving job satisfaction, with 87% of associates believing it makes their work more enjoyable [5] - 88% of European associates feel that the right technology helps them complete tasks faster [5] Inventory Management and Profitability - Inventory challenges continue to affect shopper satisfaction, with over half of shoppers leaving stores without all intended items [6] - 84% of European retail decision-makers prioritize real-time inventory synchronization, with many planning to implement advanced technologies like computer vision and RFID [7] Revenue Growth through Workflow Improvements - Retailers can achieve up to 1.8-percentage-point increases in revenue growth and profitability by improving inventory management workflows [8] - Optimizing inventory processes is seen as a key strategy for boosting profits from online orders, with a jump from 29% to 38% in prioritization [9] Regional Insights - In Europe, 84% of retail decision-makers feel pressure to synchronize real-time inventory, significantly higher than those focused on pricing and promotions [12] - In North America, 80% of retail associates face challenges in maintaining real-time visibility of out-of-stock products [13] - In Latin America, 60% of shoppers reported leaving stores without all intended items, compared to 52% globally [15]

Core Insights - Zebra Technologies Corporation is a global leader in enterprise asset intelligence solutions, offering products like barcode scanners, mobile computers, and RFID solutions to enhance operational efficiency [1] - Zebra competes with companies such as Honeywell and Datalogic in the automatic identification and data capture (AIDC) industry [1] Financial Performance - Zebra's Return on Invested Capital (ROIC) is 9.20%, while its Weighted Average Cost of Capital (WACC) is 10.94%, resulting in a ROIC to WACC ratio of 0.84, indicating that the company is not generating returns above its cost of capital [2][6] - Paycom Software, Inc. has a ROIC of 18.31% and a WACC of 7.59%, leading to a ROIC to WACC ratio of 2.41, showcasing effective capital utilization [3][6] - IDEXX Laboratories, Inc. leads the peer group with a ROIC of 46.11% and a WACC of 11.04%, achieving a ROIC to WACC ratio of 4.18, highlighting its exceptional ability to generate returns above its cost of capital [4][6] - HubSpot, Inc. has a ROIC of 4.27% and a WACC of 10.96%, resulting in a ROIC to WACC ratio of 0.39, indicating that it, like Zebra, is not covering its cost of capital [5][6]

Core Insights - Zebra Technologies' shares fell by 12.3% following disappointing guidance on third-quarter earnings, despite the actual results being satisfactory [1] - The company's guidance for fourth-quarter sales growth is between 8% to 11%, but this includes a significant favorable impact from acquisitions and foreign exchange [2] - Excluding these factors, the expected sales growth ranges from a decline of 0.5% to an increase of 2.5%, indicating a slowdown in orders [3] Financial Metrics - The current price-to-free cash flow (FCF) multiple for Zebra is 17.1 times the estimated FCF for 2025, suggesting an attractive valuation [4] - The integration of acquired companies is complete, and their contributions should be considered in evaluating Zebra's overall business performance [4] Competitive Landscape - Honeywell's productivity solutions and services (PSS) are experiencing a decline in organic sales, which may create a more favorable competitive environment for Zebra [3][5] - Honeywell is exploring strategic options for PSS, including potential divestiture, which could benefit Zebra in the future [5][7]

Core Insights - Zebra Technologies is a key player in the industrial products sector, specializing in barcode printing, mobile computing, and data capture, and is focused on maintaining its competitive edge through innovation and strategic investments [1] Investment Outlook - Truist Financial has set a price target of $331 for Zebra Technologies, indicating a potential upside of nearly 20% from its current trading price of approximately $276, reflecting confidence in the company's market position and growth prospects [2] - Asset Management One Co. Ltd. increased its holdings in Zebra Technologies by 1.7% during the second quarter, now owning 21,676 shares valued at around $6.7 million, showcasing strong belief in the company's future performance [3] Investment Activity - Other investors, such as Trust Co. of Toledo NA OH and Zions Bancorporation National Association UT, have initiated new positions in Zebra Technologies, with investments valued at approximately $25,000 and $27,000 respectively, indicating growing interest in the company's potential [3] Stock Performance - Zebra Technologies' stock is currently priced at approximately $274.53, with a slight increase of 0.08% or $0.22, and has experienced fluctuations with a daily low of $270.30 and a high of $277 [4] - Over the past year, the stock has seen a high of $427.76 and a low of $205.73, reflecting its volatile nature, and the company has a market capitalization of about $13.96 billion with a trading volume of 537,161 shares on the NASDAQ exchange [4]

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1: Analyst Background - Michael Del Monte is a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. Group 2: Investment Philosophy - Investment recommendations are based on a comprehensive understanding of the investment ecosystem, highlighting the interconnectedness of various sectors and companies [1].

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1: Analyst Background - Michael Del Monte is a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. Group 2: Investment Philosophy - Investment recommendations are based on a comprehensive understanding of the investment ecosystem, highlighting the interconnectedness of various sectors and companies [1].

Core Insights - Zebra Technologies (ZBRA) has recently attracted investor attention after a significant post-earnings decline, bringing the stock to a crucial technical support zone despite beating expectations and raising guidance [2][3] - The stock has dropped nearly 30% this year, raising concerns about the recovery pace in its core automation and enterprise mobility segments [2] - Historically, the current support range ($260.59 – $288.03) has been a turning point for ZBRA, with an average peak return of 31.2% following previous buying interest at this level [3] Financial Metrics - Revenue growth for Zebra Technologies stands at 12.9% for the last twelve months (LTM) but has an average decline of -2.4% over the past three years [5] - The company has a free cash flow margin of nearly 15.1% and an operating margin of 15.3% LTM [5] - The lowest annual revenue growth recorded in the past three years was -20.8% [5] - ZBRA stock has a price-to-earnings (PE) multiple of 27.2, indicating a higher valuation compared to the S&P [5] Market Performance - Zebra Technologies has experienced significant stock declines during major market downturns, including a 51% drop during the Dot-Com crash and a 68% decline during the recent inflation crisis [6] - The stock has also faced declines in favorable market conditions due to earnings reports and business updates [7] Portfolio Insights - The Trefis High Quality Portfolio, which includes Zebra Technologies, has a history of outperforming benchmarks like the S&P 500, S&P mid-cap, and Russell 2000 indices [8] - This portfolio has provided better returns with reduced risk, indicating a less volatile investment option [8]

Core Insights - Zebra Technologies reported third-quarter results that exceeded Wall Street expectations, with sales rising 4.8% year over year to $1.32 billion and adjusted earnings per share of $3.88, surpassing the consensus of $3.73 [1] - Despite strong results, Zebra's stock fell by 15.8% due to concerns over the sustainability of future growth, particularly influenced by the recent acquisition of Elo Touch Solutions [1][2] Financial Performance - The company's sales growth of 4.8% was above the average analyst expectation of $1.31 billion, while adjusted earnings per share of $3.88 exceeded the consensus estimate [1] - The fourth-quarter guidance provided by management also surpassed current analyst views, but it heavily relies on the Elo acquisition, which adds $8 billion to Zebra's addressable market [2] Guidance Analysis - When excluding the expected $100 million in revenues from Elo, the year-over-year growth rate for the fourth quarter drops from 9.5% to just 1%, which is significantly below the Street's consensus estimate of 6.2% [3] - The guidance appears optimistic but is misleading as it incorporates contributions from the Elo acquisition, which may not be reflected in most analyst forecasts [2][3] Market Conditions - CEO Bill Burns indicated that the impact of tariffs on costs was minimal, adding only $8 million to the bottom line, but noted that a shaky economy is leading to reduced orders from clients facing budget constraints [6] - Some clients have accelerated their orders into the third quarter, resulting in a diminished order pipeline for the upcoming period [6] Demand Outlook - The company anticipates organic revenue growth of about 6% and organic earnings growth of 16% for the year, excluding the acquisition [7] - Overall, the demand outlook remains stable, but there is significant pressure on Zebra's order books, indicating potential challenges ahead [8]

Core Insights - Zebra Technologies Corporation (ZBRA) reported third-quarter 2025 adjusted earnings of $3.88 per share, exceeding the Zacks Consensus Estimate of $3.75, marking an 11.2% increase from $3.49 per share in the same quarter last year [1][9] - Total revenues reached $1.32 billion, surpassing the consensus estimate of $1.31 billion, with a year-over-year growth of 5.2% driven by strong performance in the Enterprise Visibility & Mobility and Asset Intelligence & Tracking segments [2][9] Financial Performance - Revenues from the Asset Intelligence & Tracking segment increased by 11% year over year to $455 million, exceeding the Zacks Consensus Estimate of $426 million, with organic net sales rising by 10.6% [3] - The Enterprise Visibility & Mobility segment reported revenues of $865 million, a 2.4% increase year over year, though it fell short of the consensus estimate of $887 million, with organic net sales growing by 2% [4] Margin and Expenses - Zebra Technologies' cost of sales for the third quarter was $686 million, up 6.9% year over year, while total operating expenses also increased by 6.9% to $451 million [5] - The company reported a net income of $101 million, down from $137 million in the same period last year [5] Balance Sheet and Cash Flow - At the end of the third quarter, Zebra Technologies had cash and cash equivalents of $1,053 million, an increase from $901 million at the end of December 2024, while long-term debt rose to $2.11 billion from $2.09 billion [6] - In the first nine months of 2025, the company generated net cash of $560 million from operating activities, down from $707 million in the previous year, with free cash flow amounting to $504 million compared to $666 million in the year-ago period [7] Guidance - For the fourth quarter of 2025, Zebra Technologies expects net sales to increase between 8-11% year over year, with adjusted EBITDA margin anticipated at approximately 22% and adjusted earnings per share projected in the range of $4.20-$4.40 [8] - For the full year 2025, the company has raised its adjusted earnings outlook to $15.80 per share from the previous range of $15.25-$15.75, with an expected net sales growth of 8% year over year [9][10]