Why Shares in Zebra Technologies Fell This Week (and Why They Could Recover)

Shares in Zebra Technologies (NASDAQ: ZBRA) slumped by 12.3% in the week through Friday morning. There's little doubt over the reason for the move, with the company's guidance on its third-quarter earnings call (released earlier in the week) falling short of expectations. Still, the dip is creating an interesting buying opportunity in the stock.There was little wrong with the third-quarter results themselves, and management's headline guidance for fourth-quarter sales growth of 8% to 11% is impressive. Still, as management outlined in the earnings presentation, the guidance includes an 850-basis point (whereby 100 basis points equals 1%) favorable impact from two acquisitions (Elo Touch in September and Photoneo in February) and foreign exchange movements.Backing out these factors leaves a range of a decline of 0.5% to growth of 2.5%. That's far less impressive and reflects a slowing in orders. It also mimics what its chief rival Honeywell's productivity solutions and services (PSS) is seeing. PSS organic sales declined 3% organically in the third quarter, and Honeywell's management referred to "modest demand headwinds" for PSS in the third quarter. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool