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Stock Alert: Zebra Technologies Drops 6% After Earnings Miss Estimates

Automatic identification and data capture products maker Zebra Technologies Corporation (ZBRA) is declining more than 6% on Thursday morning after the company's fourth-quarter earnings and revenue missed estimates.

In addition, the company said since it is diversifying the sourcing of most of its U.S. volumes out of China, up to an additional $25 million of one-time pre-tax charges are expected through mid-2020, as well as $10-15 million of capital expenditure.

Earnings in the fourth quarter were at $169 million, or $3.10 per share. This compares with $115 million, or $2.11 per share last year.

Adjusted EPS of $3.56 missed estimates of analysts polled by Thomson Reuters by $0.09.

"Earnings per share were at the low end of our guidance range due to tariff expenses and a higher mix of large year-end budget orders, each of which impacted gross margin," said Anders Gustafsson, Chief Executive Officer of Zebra Technologies.

Revenue for the quarter rose 4.4% to $1.19 billion from $1.14 billion last year. The Street was expecting revenues of $1.2 billion.

The company expects first-quarter 2020 net sales to increase approximately 4% to 7% and adjusted EPS are expected to be in the range of $2.90 to $3.10. Analysts expect earnings of $3.01 on revenue growth of 5.5% for the quarter.

For the full-year, the company expects net sales to increase approximately 4% to 6%. Analysts have a consensus estimate of 5.9%.

ZBRA is currently trading at $235.87 and has been in a range of $166.15- $260.40.

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