Zebra Stock: Strong Q4 Countered by Conservative 2025 Outlook

Zebra Technologies demonstrated remarkable financial performance in the fourth quarter of 2024, with revenue surging by 32.2% to reach €1.334 billion compared to the same period last year. The company's bottom line showed exceptional improvement, with net profits soaring to €163 million, translating to €3.14 per share—a dramatic increase from the €17 million recorded in the previous year's fourth quarter. This impressive growth was primarily driven by robust purchasing patterns among North American retail customers during the year-end period, highlighting the company's strong market position in this sector.

Conservative Future Outlook Impacts Market Sentiment

Despite the strong quarterly results, Zebra's stock experienced a significant decline of over 8% on Thursday, primarily due to its cautious guidance for 2025. The technology firm projects modest revenue growth of 3% to 7% for the upcoming year, marking a considerable deceleration from its current momentum. The company's adjusted earnings per share forecast of €14.75 to €15.25 falls short of analysts' expectations of €16.00. This conservative outlook stems from uncertainties in the economic environment and geopolitical challenges that could potentially impact customer behavior in the coming year.

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Source StockWorld