Zebra Technologies (ZBRA) Stock Forecast & Price Target

Zebra Technologies reported robust revenue growth of 32% year-over-year, reaching $1.334 billion, which exceeded both the company's guidance and consensus estimates. The company also indicated positive momentum moving into Q1, projecting revenue growth of 8%-11% year-over-year, supported by improvements in most end markets and easier comparisons due to prior distributor destocking. Furthermore, Zebra's adjusted gross margin improved significantly, reaching 50.0%, reflecting a 380 basis point increase year-over-year, underscoring the company's operational efficiency and potential for continued profitability.

Zebra Technologies's stock has experienced a downward trend following the announcement of its Q4’24 results, where its adjusted EPS guidance for FY2025 fell 7% below market expectations, indicating potential challenges ahead. The company is facing significant gross profit headwinds due to newly imposed tariffs, with anticipated impacts of $20 million, which is expected to peak in the second quarter, alongside an overall decrease in gross margin. Additionally, factors such as a potential global economic slowdown, currency translation issues, and intensifying competition in key markets raise concerns about the sustainability of the company's revenue growth and profitability.