Zebra Technologies Corporation Class A (ZBRA)

In the past six months, Zebra Technologies' stock has experienced volatility. Key events impacting the stock include a Q1 2025 earnings beat, challenges due to rising costs and debt levels, negative impacts from foreign exchange fluctuations, insider and congressional selling, the acquisition of Photoneo, a positive demand environment, and share repurchases. Zebra Technologies reported its Q1 2025 earnings on April 29, 2025, with an EPS of $4.02, surpassing the consensus estimate of $3.60. Revenue for the quarter was $1.31 billion, exceeding the consensus estimate of $1.29 billion, and representing a 12% increase year-over-year. The company has faced challenges due to increasing cost of sales and high debt levels. In Q1 2025, the cost of sales increased by 8.3% year-over-year due to high raw material costs, and selling and marketing expenses rose by 8.8%. Long-term debt totaled $2.10 billion at the end of Q1 2025, with interest expenses increasing by 35.3% year-over-year. In March 2025, Zebra Technologies acquired Photoneo, a leader in 3D machine vision solutions, which is expected to enhance Zebra's portfolio and address challenges in high-value applications. The company repurchased shares worth $125 million in the first three months of 2025.

Zebra Technologies experiences some seasonality in sales, which can vary depending on the geographic region and the specific industry served. As of May 2025, the company has reported a positive demand environment with no significant changes in customer behavior, indicating stable market conditions for its products and services. In Q1 2025, total company sales increased by approximately 12%, reflecting a continued recovery in demand across major product categories, particularly for printing. The company's services and software recurring revenue also saw slight growth in the quarter.

Zebra Technologies Corporation is an American mobile computing company specializing in technology used to sense, analyze, and act in real time, providing enterprise asset intelligence solutions in the automatic identification and data capture (AIDC) industry. The company operates within the Technology sector, specifically in IT Hardware and Communications Equipment. Zebra's business is segmented into Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM). Zebra's solutions are critical for improving operational efficiency, optimizing workflows, increasing asset utilization, and enhancing regulatory compliance across various industries, including retail and e-commerce, manufacturing, transportation and logistics, healthcare, and the public sector.

Zebra Technologies has a significant global presence, operating in approximately 185 to 190 countries with over 120 facilities and around 10,500 employees worldwide. The company has more than 128 offices in 55 countries, including Australia, Brazil, Canada, China, Czech Republic, France, Germany, India, Japan, Mexico, Poland, Russia, the United Arab Emirates, and the United Kingdom. Zebra also leverages an extensive network of over 10,000 channel partners across more than 100 countries to distribute its products and solutions globally. Its direct enterprise sales representatives cover 42 countries.

In the past year, Zebra Technologies has maintained a strong brand reputation, particularly within the retail software sector. In December 2023, Zebra Technologies was recognized as a top software vendor in the Retail Information Systems (RIS) 2024 Software LeaderBoard, marking its fifth consecutive year in the top 10. In July 2020, Zebra introduced its Circular Economy Program, which promotes sustainability through the buy-back of select mobile computing devices, the sale or rental of certified refurbished devices, and recycling services.

Zebra Technologies Corp. is primarily owned by institutional shareholders, who hold 89.05% to 93% of the company's shares. Insiders own 11.69% of the company, while retail investors hold a negligible percentage. Gerhard Cless is the largest individual shareholder, owning 4.30 million shares, representing 8.46% of the company.