(Reuters) -Zebra Technologies on Tuesday forecast fourth-quarter profit and revenue growth above analysts’ estimates, signaling steady demand for its barcode scanners and mobile computers as businesses accelerate efforts to digitize operations.
Shares of the Lincolnshire, Illinois-based company were up more than 2% in premarket trading
The upbeat outlook comes as Zebra shakes off the impact of U.S.-China trade tensions, with demand recovering after it diversified manufacturing across China, Vietnam, Malaysia and Mexico.
The third-quarter results further benefited from lower-than-expected tariffs this quarter, the company said.
As warehouses, retailers and logistics firms ramp up automation, Zebra’s devices – used for scanning barcodes, tracking shipments and managing inventory – remain central to companies streamlining supply chains and improving operational visibility.
The company expects fourth-quarter net sales growth between 8% and 11%, compared to analysts’ estimate of 6% growth, according to data compiled by LSEG.
For the fourth quarter, the company expects adjusted earnings per share between $4.20 and $4.40, the mid-point of which is above analysts’ estimate of $4.24.
Zebra has also expanded its product lineup through recent acquisitions, including U.S.-based touchscreen maker Elo Touch Solutions and Slovakian 3D imaging company Photoneo, moves aimed at broadening its technology portfolio and customer base.
The company posted net sales of $1.32 billion for the quarter ended September 27, compared to analysts’ estimate of $1.31 billion. Adjusted profit came in at $3.88 a share, ahead of estimates of $3.75.
(Reporting by Kritika Lamba in Bengaluru; Editing by Shailesh Kuber)
