Zebra Technologies Turns To Profit In Q1; Sees Higher Organic Sales In Q2, FY17

(RTTNews) - Zebra Technologies Corp. (ZBRA) reported Tuesday that its first-quarter net income was $8 million or $0.16 per share, compared to a net loss of $26 million or $0.50 per share a year ago.

Adjusted net income was $72 million or $1.37 per share, compared with $56 million or $1.06 per share last year.

On average, 9 analysts polled by Thomson Reuters expected earnings of $1.30 per share. Analysts' estimates typically exclude special items.

Net sales were $865 million in the first quarter, 1.9 percent higher than $849 million in the first quarter of 2016. Consolidated adjusted net sales were $866 million, up 1.6 percent. Consolidated organic net sales growth for the first quarter was 7.0%.

Analysts were looking for sales of $847.75 million.

Looking ahead, for the second quarter, the company expects adjusted earnings per share to be in the range of $1.35 to $1.55, and adjusted net sales to change approximately down 2% to up 1% from adjusted net sales of $882 million last year. Analysts expect earnings of $1.44 per share for the quarter.

The company expects organic net sales growth of approximately 3% to 6% in the second quarter. Adjusted EBITDA margin is expected to be in the range of 17% to 18%, an improvement from the prior year period.

For fiscal 2017, the company now expects low to mid-single digit organic net sales growth, which is improved from prior outlook. The company expects organic net sales growth to moderate through 2017 considering year-over-year comparisons.

Adjusted EBITDA margin is expected to be in the range of 18% to 19% for the full year 2017, an improvement compared to the full year 2016.

For the full year 2017, the company expects to make debt principal payments totaling at least $300 million.