ZBRA - Embedded Expectations Analysis - 2019 02 27
Zebra Technologies Corporation (ZBRA:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 14.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management has concerns about sales growth, market penetration, product capabilities, and investment strategySpecifically, management may lack confidence in their ability to sustain sales, gross margin, and EPS growth, and may be concerned about their investment strategy. Additionally, management may lack confidence in their ability to penetrate lower-end markets and capitalize on Android adoption in manufacturing, and may lack confidence in the application and data-manipulation capabilities of their devices. Also, management may be exaggerating their ability to elevate retail experiences, and may be concerned about their ability to execute on growth opportunities within health care. Finally, management may be concerned about their ability to improve operating leverage, and about the value of their Xplore Technology acquisition
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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