Zebra's Q2 strong courtesy of large enterprise deals

Zebra Technologies, which is about to bulk up with the acquisition of Motorola Solutions' enterprise business, delivered a 13.9 percent sales pop in the second quarter.

Zebra Technologies, which is about to acquire the enterprise business from Motorola Solutions, delivered solid second quarter results as sales were up nearly 14 percent from a year ago due to retail demand.

The company reported second quarter earnings of $27.5 million, or 54 cents a share, on revenue of $288.4 million, up 13.9 percent from a year ago. Non-GAAP earnings were 84 cents a share. Zebra's net income figure includes $20.36 million in acquisition expenses. Wall Street was looking for non-GAAP earnings of 82 cents a share. 


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Zebra, traditionally a bar code and RFID company, is acquiring Motorola Solutions' enterprise business to bulk up and move into what the company calls "enterprise intelligence" where it tracks assets everywhere with analytics bundled with its hardware.


The company said it saw sales improve across all product lines. In North America, Zebra said it landed a series of large enterprise deals and in EMEA retail demand was strong. Gross margins in the quarter improved to 49.3 percent, up from 47.8 percent a year ago.

As for the outlook, Zebra projected third quarter sales of $285 million to $295 million with non-GAAP earnings of 81 cents a share to 91 cents a share. That outlook excludes Motorola Solutions' enterprise business. Wall Street is looking for non-GAAP earnings of 88 cents a share in the third quarter.