Why Shares in Zebra Technologies Slumped in September

Shares in Zebra Technologies (NASDAQ: ZBRA) fell 11.9% in September, according to data provided by S&P Global Market Intelligence. The fall came after the market digested the company's second-quarter earnings released at the end of August.

To be fair, the market's skepticism is probably about the third-quarter guidance rather than the second-quarter numbers. Management guided toward a year-over-year net sales decline of 3% to 7% in the third quarter, but analysts were left surprised by the guidance for adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin of just 19%.

The number is surprising because the midpoint of guidance calls for revenue of around $1.07 billion representing a 12.2% sequential increase compared to the second quarter. However, adjusted EBITDA margin is only expected to rise from 18.3% in the second quarter to 19% in the third quarter.

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Source Fool.com