Why Zebra Technologies Stock Stumbled Today
Zebra Technologies (NASDAQ: ZBRA) reported third-quarter results early Tuesday morning, exceeding Wall Street's expectations across the board. The stock was still down by 15.8% by 11:26 p.m. ET. Why did Zebra stumble and fall despite strong results and relatively rosy guidance targets?
Zebra's sales rose 4.8% year over year, landing at $1.32 billion. Your average analyst would have settled for $1.31 billion. On the bottom line, the data management expert's $3.88 of adjusted earnings per share eclipsed the Street's $3.73 consensus. Looking ahead, management's fourth-quarter guidance also exceeded the current analyst views.
However, Zebra's guidance includes significant contributions from the buyout of Elo Touch Solutions, which closed Oct. 1 and may not be incorporated in most analyst forecasts yet. It's a fairly large deal, adding $8 billion to Zebra's addressable market.
Source Fool.com
