Zebra Applied sciences (ZBRA) got here out with quarterly earnings of $4.12 per share, lacking the Zacks Consensus Estimate of $4.55 per share. This compares to earnings of $4.55 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of -9.45%. 1 / 4 in the past, it was anticipated that this producer of printers for bar codes, plastic playing cards and, radio-frequency identification tags would put up earnings of $4.19 per share when it really produced earnings of $4.61, delivering a shock of 10.02%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
Zebra , which belongs to the Zacks Manufacturing – Thermal Merchandise business, posted revenues of $1.38 billion for the quarter ended September 2022, lacking the Zacks Consensus Estimate by 6.64%. This compares to year-ago revenues of $1.44 billion. The corporate has topped consensus income estimates 3 times over the past 4 quarters.
The sustainability of the inventory’s speedy worth motion primarily based on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
Zebra shares have misplaced about 52.4% for the reason that starting of the yr versus the S&P 500’s decline of -18.8%.
What’s Subsequent for Zebra?
Whereas Zebra has underperformed the market to this point this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified these days.
Empirical analysis reveals a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested score device just like the Zacks Rank, which has a formidable observe document of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Zebra: unfavorable. Whereas the magnitude and course of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #5 (Robust Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You may see the whole record of in the present day’s Zacks #1 Rank (Robust Purchase) shares right here.
Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $5.06 on $1.51 billion in revenues for the approaching quarter and $18.24 on $5.88 billion in revenues for the present fiscal yr.
Buyers ought to be aware of the truth that the outlook for the business can have a cloth affect on the efficiency of the inventory as nicely. By way of the Zacks Trade Rank, Manufacturing – Thermal Merchandise is presently within the backside 8% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
One different inventory from the broader Zacks Industrial Merchandise sector, RBC Bearings (RBC), is but to report outcomes for the quarter ended September 2022. The outcomes are anticipated to be launched on November 10.
This maker of bearings and elements is anticipated to put up quarterly earnings of $1.79 per share in its upcoming report, which represents a year-over-year change of +101.1%. The consensus EPS estimate for the quarter has been revised 35.4% decrease over the past 30 days to the present stage.
RBC Bearings’ revenues are anticipated to be $361.32 million, up 124.6% from the year-ago quarter.
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