Zebra Technologies Corp. (ZBRA), while reporting sharp decline in fourth-quarter earnings despite higher sales, on Thursday issued first-quarter and fiscal 2026 outlook, expecting full-year earnings avove the Street. The fourth-quarter adjusted earnings met market estimates, while top line beat their view.
In pre-market activity on the Nasdaq, the shares were gaining 8.3 percent, trading at $273.50.
Looking ahead for the first quarter, the company expects adjusted earnings per share in the range of $4.05 to $4.35, adjusted EBITDA margin between approximately 21 percent and 22 percent, and sales growth between 11 percent and 15 percent compared to the prior year.
For fiscal 2026, the company projects adjusted earnings per share in the range of $17.70 to $18.30, adjusted EBITDA margin of approximately 22 percent, and sales growth between 9 percent and 13 percent compared to the prior year.
The Wall Street analysts on average also expect earnings of $4.11 per share for the first quarter and $17.62 for the full year. Analysts' estimates typically exclude special items.
In the fourth quarter, net income plunged 57.1 percent to $70 million from last year's $163 million pounds. Earnings per share dropped 55.7 percent to $1.39 from $3.14 a year ago.
Adjusted net income was $219 million or $4.33 per share, compared to $208 million or $4 per share a year earlier.
Analysts also expected earnings of $4.33 per share for the quarter.
Adjusted EBITDA for the fourth quarter increased 10.5 percent year-over-year to $326 mln, while adjusted EBITDA margin remained flat at 22.1 percent.
Net sales were $1.475 billion in the fourth quarter, up 10.6 percent from $1.334 billion in the prior year. The Street was looking for net sales of $1.47 billion for the quarter.
Consolidated organic net sales increased 2.5 percent year over year, with a 3.6 percent increase in the CF segment and 1.3 percent increase in the AVA segment.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.