Zebra Tech raises annual forecast as demand for automation products stays strong

Aug. 4 (Reuters) - Zebra Technologies raised its annual sales and adjusted earnings forecast on Tuesday as demand for products that help businesses automate warehouses, stores and supply chains remained strong.

Shares of the Lincolnshire, Illinois-based company rose about 10% in premarket trading.

Here are some details:

• Businesses have been investing in automation to improve productivity and manage warehouses and supply chains more efficiently.
• Zebra Technologies makes barcode scanners, mobile computers, industrial printers and software to help businesses automate warehouses, stores and supply chains.
• Its customers include retailers, manufacturers, logistics companies, healthcare providers and government agencies.
• The company posted second-quarter revenue of $1.56 billion, topping analysts' average estimate of $1.50 billion, according to data compiled by LSEG.
• Adjusted earnings per share came in at $6.35, above estimates of $4.36.
• Zebra forecast third-quarter sales growth of 17% to 20%, above analysts' estimate of 13.9%.
• The upbeat outlook was supported by "strong demand momentum" and progress on productivity and memory supply, CEO Bill Burns said, adding that Zebra continued to benefit from trends in automation and Physical AI.
• The company raised its full-year sales growth forecast to a range of 14% to 16%, from 10% to 14% earlier.
• Zebra raised its full-year adjusted earnings forecast to between $20.75 and $21.25 per share, from its previous outlook of an $18.30-$18.70 range.
• Zebra said last year it plans to continue investing in technologies including AI, which it believes will help automate workflows and improve decision-making.