2024-10-29 23:45:36 :
(Reuters) – Barcode scanner maker Zebra Technologies on Tuesday forecast fourth-quarter profit above Wall Street expectations, betting that its restructuring efforts will drive improved demand and better cost controls.
After a challenging 2023, demand for Zebra products has been recovering, driven by portable mobile computing devices used by workers in retail, healthcare and other industries.
Each of the company’s product segments — mobile computing, printing and scanning — posted double-digit growth in the third quarter.
“From a product perspective, mobile computing is leading the way, but we’re also seeing growth in printing and DCS scanners. Another area of growth we’re seeing is RFID,” Chief Executive Bill Burns told Reuters. DCS scanners are handheld devices used to scan barcodes, while RFID refers to electromagnetic scanning technology.
Burns said that while Zebra’s clients favored small and mid-sized deals over large deals in the first half of the year, large deals recovered in the third and fourth quarters.
“(Big deals) were led by retail, e-commerce and logistics. The seasonality that we typically see in the business, which is an uptick in the fourth quarter over the third quarter, we’re actually seeing that this year as well.”
Burns said large transactions have not yet reached historic levels. “Things haven’t fully recovered yet. Some of our customers are placing large orders and some are still using the capacity they built during the pandemic.”
On an adjusted basis, Zebra expects fourth-quarter profit in the range of $3.80 to $4.00 per share, compared with analysts’ average estimate of $3.54, according to data compiled by LSEG.
Third-quarter results also benefited from a cost-savings program that included a voluntary retirement program designed to reduce labor costs.
(Reporting by Rishi Kant in Bengaluru; Editing by Tasim Zahid and Devika Syamnath)
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