Zebra Technologies Q2 Margins Shrink Due to Supply Chain Crisis, Issues Below Par Outlook

Zebra Technologies Corp. office in Pittman Way, Preston, Britain on May, 2022. Google Maps/Screenshot via The Epoch Times

Zebra Technologies Corp. FY22 net sales growth of 6.6 percent year-on-year to $1.47 billion, beating the consensus of $1.44 billion. Consolidated organic net sales for the quarter increased by 6.9 percent.

Net sales in the Enterprise Visibility & Mobility (EVM) segment rose 5.8 percent Y/Y to $1.02 billion. Asset Intelligence & Tracking (AIT) segment net sales increased 7.7 percent Y/Y to $446 million.

Margins

The non-GAAP gross margin contracted 200 bps to 46 percent due to higher premium supply chain costs and China import tariff recoveries.