Zebra Technologies Reports Strong Q4 2024 Performance

Zebra Technologies delivered a strong Q4 2024 with sales exceeding $1.3 billion, showcasing 32% year-over-year growth. Driven by recovery in demand across key sectors, the outlook remains cautious due to external uncertainties.

Date: 13-02-2025

AI Rating: 7

Earnings Per Share (EPS)
For Q4, Zebra reported non-GAAP diluted earnings per share of $4, which reflects a significant increase—more than double the prior year. This positive growth in EPS can enhance investor sentiment and potentially lead to upward adjustments in stock price.

Revenue Growth
Zebra Technologies showcased impressive revenue growth with a reported 32% year-over-year increase in total sales for Q4. The notable performance was attributed to robust demand recovery across most end markets, particularly in North America retail, which bodes well for long-term growth expectations and can positively influence stock prices.

Free Cash Flow (FCF)
For the full year, Zebra generated $954 million of free cash flow with a conversion rate of 136%. The strong cash flow provides the company with the flexibility to invest further in growth opportunities and return capital to shareholders, which could bolster investor confidence and support stock price appreciation.

Profit Margins
The adjusted EBITDA margin for Q4 was reported at 22.1%, a 670 basis point increase compared to the prior year. The significant margin expansion indicates operational efficiency improvements and enhances profitability, which can have a favorable impact on stock valuation.

Despite these strong financial metrics, Zebra remains cautious about the future. Challenges such as geopolitical uncertainties, dynamic global trade conditions, and unfavorable foreign exchange rates pose risks that could dampen future performance. The company expects a sales growth guidance range of 3% to 7% for the year ahead, which reflects a tempered outlook compared to the strong performance seen in Q4. Investors may therefore consider these cautionary notes when assessing Zebra's future stock performance.

Stocks: ZBRA