Earnings Analysis for ZBRA
Revenue Analysis
Total and Operating Revenue: Over the three-year period, ZBRA’s operating revenue has shown growth from $956 million in Q3 of 2023 to $1.175 billion by Q1 of 2024. The revenue peaked at $1.405 billion in Q1 of 2023 indicating a high but variable revenue stream through the analysed periods.
Gross Profit Margins: Gross profit has also increased in line with revenue, from $427 million in Q3 of 2023 to $563 million in Q1 of 2024, with the highest being $667 million in Q1 of 2023. This suggests effective management in generating revenue above the cost of goods sold.
Cost Management
Cost of Revenue: The cost of revenue has experienced fluctuations, generally increasing with revenue figures: from $529 million in Q3 2023 to $612 million in Q1 2024, with a peak at $738 million in Q1 2023.
Operating Expense: Operating expenses have also followed a similar pattern, peaking at $432 million in Q1 2023 and then slightly reducing to $393 million by Q1 2024.
Total Expenses: Total expenses hovered around $1 billion in each quarter, reaching $1.175 billion in Q1 of 2023. The careful management of such expenses is crucial for profitability.
Profitability Analysis
EBITDA: ZBRA’s EBITDA ranged from $18 million in Q4 2023 up to $254 million in Q2 2023 indicating significant variability in earnings before interest, taxes, depreciation, and amortization.
Operating Income: Operating income shows recovery from a low of -$12 million in Q3 2023 to $170 million by Q1 2024 suggesting improving profitability.
Pretax Income: Fluctuated significantly, with a loss of -$24 million in Q3 2023 and a positive $142 million by Q1 2024, highlighting potential volatility in earnings before tax.
Net Income: Mirroring this trend, net income shows negative $15 million in Q3 of 2023 and a robust recovery to $115 million by Q1 of 2024.
Cash Flow Indicators
Reconciled Depreciation: Consistently recorded around $44 million each quarter, emphasizing ongoing asset depreciation impacts.
Interest Expense: While detailed interest expense was not consistently reported, net interest income was noted as negative in several quarters such as -$64 million in Q4 2023, affecting cash flows.
Taxation
Tax Rate: Varied significantly; from 0.375 in Q3 2023, reducing to more moderate levels such as 0.190 in Q1 2024.
Tax Provision and Effect: Tax provisions and their effects on unusual items have shown drastic changes, from a tax provision of -$15 million in Q4 2023 to $27 million in Q2 2023.
Shareholder Metrics
Diluted and Basic EPS: There were significant changes in EPS; moving from a negative -$0.28 in Q3 2023 to a positive $2.90 in Q1 2023 and unspecified in Q1 2024.
Average Shares: The number of average diluted shares remained somewhat consistent around 51.7 million through the periods.
Net Income Available to Common Stockholders: Mirroring net income, available income to common stockholders showed recovery from -$15 million in Q3 2023 to $115 million by Q1 2024.
Conclusion
ZBRA’s financial performance has demonstrated considerable fluctuations in profitability, revenues, and costs over the examined period. While there’s evident growth and recovery in recent quarters, the volatility in net income and operational income requires careful management and strategy refinement aimed at stabilizing profitability.
Appendices
Data tables and detailed calculations were used to inform this analysis (omitted here for brevity).