Zebra Technologies Sees Q4 Adj. EPS In Line With View

(RTTNews) - Zebra Technologies Corp.(ZBRA) expects fourth-quarter 2017 adjusted net sales to increase approximately 3% to 6% from adjusted net sales of $944 million in the fourth quarter of 2016. The company expects organic net sales growth of approximately 2% to 5% in the fourth quarter. This expectation excludes an approximately 2 percentage point positive impact from foreign currency translation and an approximately 1 percentage point adverse impact from wireless LAN business sales.

Adjusted EBITDA margin is expected to be approximately 19% to 20% for the fourth quarter 2017, favorable to the prior year period. Non-GAAP earnings per share are expected to be in the range of $2.00 to $2.20, assuming an effective tax rate in the low- to mid-20% range. Analysts polled by Thomson Reuters expect the company to report earnings of $2.08 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Additionally, for the full year 2017, the company continues to expect to reduce total debt balances by at least $300 million.

Net loss for the third quarter of 2017 was $12 million, or $0.23 per share, compared to a net loss of $83 million, or $1.61 per diluted share, for the third quarter of 2016.

Non-GAAP net income for the third quarter of 2017 was $101 million, or $1.87 per diluted share, compared with $75 million, or $1.43 per diluted share, for the third quarter of 2016.

Net sales were $935 million in the third quarter of 2017 compared to $904 million in the third quarter of 2016.

Consolidated adjusted net sales were $936 million in the third quarter of 2017 compared to $906 million in the prior year period, an increase of 3.3%. Consolidated organic net sales growth for the third quarter was 5.9% reflecting growth across all regions, most notably Latin America, EMEA, and North America. Third-quarter year-over-year organic net sales growth was 5.5% in the Enterprise segment and 6.6% in the Legacy Zebra segment.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.73 per share and revenues of $914.98 million for the third-quarter.