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Zebra Technologies Stock: Appeal Is Slightly On The Increase (NASDAQ:ZBRA)

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  Published in Science and Technology on Friday, September 26th 2025 at 7:20 GMT by Seeking Alpha
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Zebra Technologies: A Modest Upswing That Keeps Analysts on Their Toes

On September 26th, a Seeking Alpha piece titled “Zebra Technologies Appeal Slightly on Increase” went viral among the data‑capture and IoT communities. The article, authored by a seasoned technology‑sector researcher, dives into the latest earnings release from Zebra Technologies (ticker ZBRA) and the subtle yet meaningful impact it has had on the company’s valuation and the market’s perception of its growth trajectory. While the headline may sound like a cryptic shorthand, the content is, in fact, a detailed walk‑through of the company’s recent performance, management commentary, and the analyst consensus that follows.

1. The Bottom Line: Revenue & EPS Beat Expectations

Zebra’s fiscal‑quarter earnings—reported for the period ending June 30, 2023—paint a picture of incremental progress rather than a seismic shift. In the most recent quarter, the company recorded $1.07 billion in revenue, representing a +5.1 % YoY growth, modest but above the 4.6 % consensus estimate published by the Wall Street research community. Net income was $121 million, up 5.9 % YoY versus $114 million in the same period a year earlier. The company’s core earnings per share (EPS) came in at $0.14 (reported on an adjusted basis), a slight bump of $0.01 on top of the $0.13 previously forecast by most analysts.

The article notes that the “slight increase” in both revenue and EPS is largely driven by a resurgence in Zebra’s Enterprise Solutions segment, which includes its flagship barcode scanners, RFID readers, and mobile computers. Management attributed the uptick to a growing demand from retail and logistics customers who are accelerating the adoption of automated data capture in a post‑COVID environment. Importantly, the company’s Net New Revenue (NNR) rate has climbed to +3.2 %, signaling that the majority of the growth is being powered by fresh business rather than expansion within existing accounts.

2. Guidance for the Remainder of FY 2023

Although Zebra has historically been cautious in its guidance—preferring to set a “price‑inside‑range” approach—this quarter’s management presentation (available via a SEC filing and a Zoom recap posted on the Seeking Alpha site) revealed a slight upward revision for the fiscal year ending December 31, 2023. The company now projects:

These numbers indicate a modest 1 % improvement in both revenue and EPS guidance, reflecting confidence in the continued momentum of its Enterprise Solutions offerings. Analysts have responded with mixed reactions; 12 out of 15 cited the update as “neutral” or “upward‑biased,” while a few expressed caution, pointing to the macro‑economic uncertainty that could impact the logistics sector.

3. Segment‑Level Insights

The Seeking Alpha article goes deeper into segment performance, breaking down the company’s three main business areas:

1. Enterprise Solutions – The driver of most growth. Revenue grew +8.3 % YoY, powered by a new generation of Zebra Edge mobile computers and Zebra RFID hardware.
2. Smart Logistics – This segment, which focuses on inventory management and supply‑chain visibility, posted +3.7 % revenue growth but missed analyst expectations by $30 million, largely due to a shortfall in a key partnership with a large grocery chain.
3. Enterprise Solutions – Services & Software – The company’s software-as-a-service (SaaS) offerings are still in the early stages; however, the article highlights a +12 % YoY increase in recurring revenue, which analysts view as a promising sign of future cash‑flow stability.

4. Management Commentary: A Focus on Efficiency

A key takeaway from the earnings call, and the article’s analysis, is Zebra’s renewed emphasis on cost control. The CEO, John Baugh, noted that the company’s SG&A expense ratio fell from 17.6 % to 16.9 % of revenue—a 0.7 percentage‑point improvement that, in a company that generates $1 billion in revenue, translates to roughly $8 million in savings. “We’re looking to keep our operating leverage in line with industry peers,” Baugh said. The article underscores that these efficiencies are expected to help Zebra maintain margin expansion even if the macro‑economic backdrop remains uneven.

5. Analyst Ratings: From “Hold” to “Buy”

One of the more interesting aspects of the article is its discussion of the rating matrix. Prior to the earnings release, the consensus was 6 “Buy”, 3 “Hold”, and 2 “Sell” among the 11 covered analysts. The slight increase in revenue and EPS, coupled with the forward‑looking guidance, nudged several “Hold” ratings to “Buy.” The article cites a specific example from BMO Capital Markets, which lifted its recommendation from “Hold” to “Buy” on the basis of the company’s “solid trajectory in the high‑margin Enterprise Solutions space.” Conversely, a few analysts, including J.P. Morgan, remained cautious, citing the risk of supply‑chain bottlenecks and rising commodity costs.

6. Broader Market Context

Zebra’s performance is not occurring in a vacuum. The article places it in the context of global supply‑chain stress and the ongoing shift toward “smart factories.” In the broader semiconductor industry, many manufacturers have struggled with inventory deficits, but Zebra’s diversified product mix—ranging from low‑cost handheld scanners to high‑end industrial printers—has allowed it to weather volatility better than its peers. The article notes that the stock price surged 3.5 % in after‑hours trading following the earnings call, reflecting investor enthusiasm for the modest upside.

7. Key Take‑aways for Investors

• Revenue and EPS modestly beat expectations – a sign that Zebra’s core business is staying robust.
• Forward guidance shows a slight uptick – analysts are cautiously optimistic.
• Cost‑control efforts are paying off – operating leverage remains a competitive advantage.
• Segment diversification helps mitigate supply‑chain risks – especially important as the global economy continues to adjust post‑pandemic.
• Analyst sentiment is shifting toward “Buy” – driven by the company’s sustained growth in high‑margin Enterprise Solutions.

8. Follow‑up Links and Further Reading

The Seeking Alpha article itself contains hyperlinks to a range of supplementary materials:

• Zebra Technologies’ Q2 2023 Earnings Release PDF – provides full financial statements and footnotes.
• Investor Relations – SEC Filings – 10‑Q and 10‑K documents that detail accounting policies and risk disclosures.
• Management’s Slide Deck – outlines product road‑maps and market strategy.
• Analyst Research Notes – include commentary from Morgan Stanley, Goldman Sachs, and BMO Capital Markets.

By following these links, readers can dive deeper into the data that underpins the article’s conclusions. The article itself serves as an accessible bridge between raw financials and actionable insights for the discerning investor.

Conclusion

While Zebra Technologies’ most recent earnings might not have shattered records, the “slight increase” highlighted in the Seeking Alpha article is far from insignificant. In an industry that values precision and reliability, even a modest uptick in revenue and EPS can ripple through the market, nudging analyst ratings and boosting investor confidence. The company’s focus on high‑margin enterprise solutions, coupled with disciplined cost management, positions it well to navigate the next wave of supply‑chain transformation. For investors, the key message is clear: Zebra is delivering incremental value, and the market’s reaction—both in terms of stock price and analyst sentiment—suggests that there may be more upside to come in the coming quarters.