- Zebra Technologies Corp (NASDAQ:ZBRA) reported second-quarter FY22 net sales growth of 6.6% year-on-year to $1.47 billion, beating the consensus of $1.44 billion. Consolidated organic net sales for the quarter increased by 6.9%.
- Net sales in the Enterprise Visibility & Mobility (EVM) segment rose 5.8% Y/Y to $1.02 billion. Asset Intelligence & Tracking (AIT) segment net sales increased 7.7% Y/Y to $446 million.
- Margins: The non-GAAP gross margin contracted 200 bps to 46% due to higher premium supply chain costs and China import tariff recoveries.
- The non-GAAP EBITDA margin contracted 170 bps to 21.9%.
- Non-GAAP EPS of $4.61 beat the consensus of $4.21.
- Zebra held $98 million in cash and equivalents.
- “Sales growth was near the high end of our expectations, and we were able to deliver adjusted earnings per share growth over the prior year, despite continued elevated supply chain costs and foreign currency exchange headwinds,” CEO Anders Gustafsson said.
- Outlook: Zebra’s Q3 net sales guidance of $1.465 billion -$1.493 billion was below the consensus of $1.51 billion.
- The non-GAAP EPS of $4.35 – $4.65 was below the consensus of $5.08.
- Zebra’s FY22 net sales outlook of $5.86 billion – $5.97 billion compared to the consensus of $5.94 billion.
- Price Action: ZBRA shares traded lower by 8.77% at $327 on the last check Tuesday.
CannAmerican Stock Plummets On LOI To Acquire Mark2
Cann American Corp. (OTCPK:CNNA), has entered into a binding letter of intent.
Under the terms of the agreement Cann American will acquire 80 million common shares of Mark2media Group, constituting 80% majority ownership in Mark2, in exchange of 1.5 million series B preferred shares of Cann American.
