Shares of mobile computing company Zebra Technologies, Corp. (ZBRA) have dropped 28% so far this year. ZBRA’s recent fourth-quarter performance came in ahead of the Street’s estimates on both its top-line and bottom-line fronts.
Driven by growth in the Enterprise Visibility & Mobility Unit and Asset Intelligence & Tracking segment, revenue increased 12.2% year-over-year to $1.47 billion, beating estimates of $1.46 billion. Earnings per share at $4.54 came in ahead of expectations of $4.40.
Management noted challenges stemming from supply chain bottlenecks, but highlighted that the company is poised for profitable 2022 growth due to a strong order backlog and business pipeline.
With these developments in mind, let us take a look at the changes in ZBRA’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Zebra Tech’s top risk category is Production, contributing 9 of the total 34 risks identified for the stock, compared to a sector average of 5 risk factors under the same category.
In its recent report, the company has added one key risk factor under the Production risk category.
ZBRA highlighted that the success of its business hinges upon the company’s ability to attract and retain key personnel. In ZBRA’s industry, there is a high demand for skilled employees and competition is intense. This factor combined with higher employee turnover or higher compensation and benefit costs could have an adverse impact on ZBRA.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have decreased holdings in Zebra Tech by 228.8 thousand shares in the last quarter, indicating a very negative hedge fund confidence signal in the stock based on activities of 11 hedge funds.
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