Bar code manufacturer Zebra Technologies Corp. (ZBRA, Financial) traded +23.78% higher on solid earnings results. Sales growth across the North America and EMEA regions, offset a softer spending environment in China. Operational discipline and cost efficiencies drove margin expansion and ZBRA delivered record earnings per share in the quarter. The company continues to win business across products and verticals with a broad range of leading enterprises, including a recently announced multi-year agreement with the United States Post Office. We believe there is still more upside to come. Specifically ZBRA’s nascent opportunity in the healthcare space, the deferment and runway of Android refresh cycles, as well as the potential to create value through capital allocation. As evidenced by our heavy weighting in the portfolio, we continue to like everything about this story.
From John Rogers (Trades, Portfolio)' Ariel Fund fourth-quarter 2019 commentary.
