Tuesday, Zebra Technologies Corp. (ZBRA), a manufacturer of thermal bar code printers, reported a sharp decline in net income for the second quarter that lagged the market view, as the slowdown in global economic activity negatively impacted sales. The company also provided an earnings forecast for the third quarter, which is lower than analysts' current estimate.
For the quarter, net income plunged to $9.01 million or $0.15 per share from $25.53 million or $0.39 per share a year earlier.
Quarterly results included $3.64 million of exit, restructuring and integration costs which lowered earnings by $0.04 per share.
On average, nine analysts polled by Thomson Reuters expected earnings of $0.20 per share for the quarter. Analysts' estimate typically exclude special items.
Net sales was $187.68 million, much lower than $253.78 million in the comparable period, impacted by the decline in global economic activity as well as larger sales declines among high performance and midrange tabletop printers. Six analysts estimated revenues of $193.31 million for the quarter.
Based on product category, sales from Hardware declined to $125.09 million from $185.64 million, and Supplies' sales was $35.59 million, down from $43.80 million in the previous year. Service and software sales were $25.75 million, lower than $27.52 million last year. Sales from shipping and handling decreased to $1.27 million from $1.83 million in the same quarter last year.
Geographically, sales from Europe, Middle East and Africa declined to $69.04 million from $92.11 million, and Latin America's sales was $15.01 million, down from $21.37 million in the year-ago quarter. Sales from Asia-Pacific decreased to $19.84 million from $28.03 million last year. Sales from North America plunged to $83.79 million from $112.27 million in the same quarter previous year.
For the six-month period, net income was $18.36 million or $0.31 per share, lower than $53.17 million or $0.81 per share in the previous year. Year-to-date, net sales plummeted to $380.29 million from $500.06 million in the comparable period last year.
Looking forward to the third quarter, the company expects earnings per share in the range of $0.14 and $0.21, including expected exit and restructuring costs of $0.03 per share. Net sales is anticipated to be in the range of $186 million to $198 million. Analysts currently expect earnings of $0.24 per share sales of $202.08 million for the third quarter.
ZBRA closed Monday's regular trading at $24.46 on the Nasdaq.
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