Zebra Technologies Corporation (ZBRA), a mobile computing company, Tuesday reported a slight decrease in its second-quarter profit, despite growth in revenue. Profit as well as revenue beat the Street view. The company also raised its annual outlook. Following the news, the company's shares were more than 6% up in pre-market.
Separately, Zebra announced its decision to acquire Elo Touch Solutions, Inc. for about $1.3 billion.
"An increased focus on self-service and consumer-facing workflows will expand our addressable market by approximately $8 billion and create a leading portfolio of solutions that digitize and automate the frontline of business. We look forward to welcoming the Elo team to Zebra and pursuing new growth opportunities together following the closing of the acquisition," said Bill Burns, Chief Executive Officer of Zebra Technologies.
Net income for the quarter declined to $112 million or $21.9 per share from $113 million or $2.17 per share a year ago.
Excluding one-time items, profit of $186 million or $3.61 per share beat the analysts' average estimate of $3.33 per share. Analysts' estimates typically exclude special items.
Sales for the quarter grew 6.2% to 1.293 billion from $1.217 billion in the previous year. The consensus estimate was for $1.29 billion.
For the third quarter, the company expects sales to grow in the range of 2% - 6%. Adjusted EPS for the year is expected in a range of $3.60 - $3.80. Analysts expect the company to report earnings of $3.44 per share on sales growth of 4.02%.
For the full-year, the company has raised its outlook. It now expects sales to grow in a range of 5%-7%, up from the previous outlook of from 3%-7% growth. Adjusted EPS outlook has been raised to $15.25 - $15.75 from $13.75 - $14.75. The consensus estimate for EPS is $14.65 on sales growth of 5.91%.
"Solid demand, excellent execution by our team and lower-than-expected tariffs enabled us to deliver second quarter results that exceeded our expectations," commented Burns.
Zebra shares closed at $341.36, up 1.83% on Monday. It has traded in the range of $205.73 - $427.76 in the last 1 year.
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