Zebra Technologies announced its Q1 2017 earnings on May 8, beating analyst expectations on EPS by $0.07 and revenues by $17.25M. The company saw an improvement over Q1 2016 across all regions with its various product lines; this included double-digit sales growth in EMEA and Latin America and a 5% growth in North America. Strong demand from retail and e-commerce customers contributed to success this quarter that exceeded Zebra’s guidance range. Enterprise segment sales (mobile computing and data capture) increased 9% to $544M and legacy business (including barcode printers, card printers, consumables & supplies, and location services) was up 3% to $322M. The company also saw its gross margin expand by 20 basis points from Q1 2016 to 46.4%, primarily due to its initiatives around trimming product-related costs.
The following are some of the key highlights from Zebra’s Q1 2017 earnings conference call:
From VDC’s perspective, the retail vertical presents significant opportunities for technology leaders like Zebra Technologies as the narrative evolves from physical vs. digital to one that embraces the best of both worlds to create a more engaging and immersive shopper experience. It is encouraging to hear the company raise its guidance for the year on the back of a strong Q1 and a robust sales pipeline going forward. The diversified focus on verticals other than retail and logistics also help position Zebra for continued success. VDC believes that the company’s efforts to extend its vision of Enterprise Asset Intelligence will serve to present a unified message about its various product lines across both partners and customers, thereby helping it improve organizational synergies and engage in new opportunities in subsequent quarters.
View the 2017 AutoID & Data Capture Research Outline to learn more.