Shares of Zebra Technologies (ZBRA - Get Report) surged on Tuesday after the company reported second-quarter earnings that beat Wall Street forecasts amid ongoing demand for its inventory and asset-tracking systems.
The Lincolnshire, Ill.-based company posted second-quarter non-GAAP net income of $165 million, or $3.02 a share, vs. $135 million, or $2.48 a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting earnings of $2.89 a share. Sales were $1.1 billion, matching analysts' forecasts.
Adjusted earnings before income, taxes, depreciation and amortizationincreased 17.1% year over year to $233 million from $199 million in the same quarter last year.
"Our second-quarter results were driven by continued broad-based demand for our solutions with particular strength in mobile computing," CEO Anders Gustafsson said in a statement. "We remain on track to achieve our full-year 2019 sales growth target and are increasing our EBITDA margin outlook due to improved productivity in the business."
Looking forward, Zebra said its third-quarter sales are expected to increase between 3% to 5%, with acquired businesses offsetting a negative impact from foreign currency translation. Non-GAAP earnings per share are expected to be in the range of between $3.15 and $3.35, the company said.
Adjusted EBITDA margin is expected to be approximately 22% for both the third quarter and full year.
Separately, Zebra announced that its board has approved a $1 billion share repurchase plan.
Zebra makes RFID tracking chips, and bar code scanners and printers enhanced with software and services that help companies track and manage inventory and other assets.
Shares of Zebra were up more than 14% at $216.30 in trading on the Nasdaq Stock Market.