A Backlog of Different Stripes: Zebra's Hidden Potential
If you have been looking for a chance to buy Zebra Technologies (NASDAQ: ZBRA) at a reasonable price, this could be it.
Zebra reported first-quarter results on Tuesday morning, and the report itself was fine. Earnings were down 2% year over year while revenue fell 0.5%, and I would call that a flattish business trend -- relatively impressive, given the difficult global economy in these trying times. And it was enough to edge out Wall Street's consensus estimates by the skin of the zebra's teeth.
However, the stock still fell 11% on Tuesday, retreating to prices not seen since December last year. All told, Zebra's stock price is down 31% in 52 weeks. You see, market makers focused on Zebra's modest guidance targets instead of the solid first-quarter numbers. Second-quarter sales are expected to fall 10% year over year and earnings should come in roughly 30% lower.
Source Fool.com
