Barrington Research Previews Zebra Technologies Q2 Earnings

Barrington Research expects Zebra Technologies Corp. (NASDAQ: ZBRA)' earnings and revenues for the second quarter below consensus. Zebra Technologies, which makes enterprise mobile computers and advanced data capture devices, will report the financial results for its second quarter on August 9, before the market open.

The brokerage projects revenue of $865 million, and adjusted EPS of $1.00, while First Call consensus expectations include revenue of $869 million and adjusted EPS of $1.05.

The company guided second quarter net sales to be down 3 percent to flat from a base of $894 million in the second quarter of 2015. Adjusted EBITDA margin is expected in a range from 15–16 percent, with adjusted EPS from $1.00–$1.20, which includes the impact from foreign currency.

For FY16, Barrington forecast total revenue of $3.57 billion, and adjusted EPS of $5.08. Management expects net sales excluding purchase accounting adjustments to be in a range of down 3 percent to positive 1 percent growth from comparable net sales of $3.668 billion for FY/15. Implied full-year guidance ranges include $3.56 billion–$3.70 billion of revenue.

Related Link: Griffin Capital Corp Acquires Zebra Technologies Corp HQ

"We believe Zebra's market leadership position and portfolio breadth provide positive longer-term prospects with an anticipated migration of 12–15 billion mobile devices to new operating systems by 2020," analyst Matthew Gall wrote in a note.

Gall maintains his Outperform rating and price target of $75 on the stock, which is currently up 0.68 percent to $57.82. Based on Friday's close, the $75 target price implies a potential upside of 30.5 percent.

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