(Reuters) – Barcode scanner maker Zebra Technologies forecast its fourth-quarter profit above Wall Street estimates on Tuesday, betting on stable demand for its products and as cost cuts pay off.
Shares of the company rose 6.2% in premarket trading.
After economic uncertainty hammered its results in 2023, demand for Zebra’s products has been recovering, led by portable devices that workers use across different industries, including retail, warehouses, healthcare and manufacturing.
The company said it expects customers to focus on medium or small-sized deals, spread out over a longer time, for the rest of the year, as businesses stay cautious about spending.
On an adjusted basis, Zebra expects a fourth-quarter profit between $3.80 and $4.00 per share, compared with analysts’ average estimate of $3.54, according to data compiled by LSEG.
The Lincolnshire, Illinois-based company expects fourth quarter revenue to grow between 28% and 31%, the mid-point of which was higher than analysts’ expectation of a growth of 24.3%, according to data compiled by LSEG.
Its results for the third-quarter also benefited from a cost-saving plan that included a voluntary retirement plan, which was meant to reduce labor costs.
Operating expenses fell 3.9% in the quarter ended Sept. 30.
Zebra reported revenue of $1.26 billion, above analysts’ estimates of $1.22 billion. Its adjusted profit of $3.49 per share beat analysts’ expectations of $3.24.
(Reporting by Rishi Kant in Bengaluru; Editing by Tasim Zahid)
Comments