ZBRA 2Q18: Zebra’s Gallop Accelerates; Raising Estimates
BUY
- 2Q18 (June) adjusted EPS of $2.48 (vs $1.51 a year earlier), jumped 65%, 22 cents above our estimate, aided by organic growth of 11%, better-than-anticipated margins and a tax rate slightly below what we modeled;
- Our 2018 EPS projection is now $10.50 (from $10.08), up 49% from 2017, given the 2Q outperformance and strong backlog, including momentum in all of Zebra’s product lines and new large mobile computing deals anticipated in the second half of the year, as well as lower interest expense and a reduced tax rate;
- Our 2019 EPS estimate is now $11.66 (from $11.19), up at least 11% from our 2018 projection.
Zebra Technologies designs, manufactures, and sells a range of automatic identification and data capture products, including: mobile computers, barcode scanners and imagers, radio frequency identification devices (RFID) readers, printers for barcode labeling and personal identification, real-time location systems, related accessories and supplies, such as labels and other consumables, and software utilities and applications. The company has two segments: Asset Intelligence and Tracking, which includes barcode and card printing, supplies, services, location solutions, and retail solutions; and Enterprise Visibility and Mobility, which includes mobile computing, data capture, RFID, and services.
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