Please ensure Javascript is enabled for purposes of website accessibility

Why Zebra Technologies Corporation Stock Took a Hit

By Daniel Sparks - Feb 25, 2016 at 4:16PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here are the metrics that might be sending Zebra shares lower on Thursday.

Image source: Zebra Technologies.

What: Asset intelligence product and service provider Zebra Technologies (ZBRA 0.77%) stock fell as much as 16.3% on Thursday following the release of the company's fourth-quarter results, and shares are down about 15% at the time of this writing.

So what: The stock's sell-off on Thursday is likely at least partially a result of the company's worse-than-expected revenue for the quarter, along with its weaker-than-expected outlook for the current quarter.

On average, analysts were expecting Zebra to report revenue and non-GAAP EPS of $960 million and $1.47, respectively. Instead, the company reported revenue and non-GAAP EPS of $953 million and $1.51. EPS, therefore, came in slightly higher than anticipated but revenue was worse than the average analyst estimate.

Looking ahead, the company said it expects first quarter non-GAAP EPS to be in the range of $1.19 to $1.34. On average, analysts were expecting first-quarter EPS of $1.37 -- above Zebra's guidance range.

Now what: Going forward, Zebra CEO Anders Gustafsson said the company currently has a "healthy pipeline of activity" and expects "to gain momentum through the remainder of the year, enabling us to meet our growth goals for 2016 and longer-term."

Daniel Sparks has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Zebra Technologies Corporation Stock Quote
Zebra Technologies Corporation
$349.41 (0.77%) $2.67

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.