Oct 31 (Reuters) - Barcode scanner maker Zebra Technologies Corp (ZBRA.O) beat third-quarter profit and revenue estimates on Tuesday but forecast a bigger-than-expected drop in the fourth-quarter net sales due to slowing tech spending in a tough economy.
With inflation and weak consumer spending still weighing on the company's operations, it expects free cash flow to remain negative this year.
Zebra Technologies initiated several cost-cutting measures in the second quarter, such as slowing hiring and downsizing its offices, to combat the impact of soft demand across its end-markets.
Its third-quarter revenue of $956 million beat expectations of $926.3 million, while adjusted earnings of 87 cents per share came above estimates of 81 cents per share.
The company said it now expects annual cost savings to be about $100 million, up from $85 million, from its cost initiatives.
Persons:
Bill Burns, Yamini, Saumyadeb
Organizations:
Zebra Technologies, . Postal Service, Walgreens Boots Alliance, The Lincolnshire ,, Thomson
Locations:
The Lincolnshire, The Lincolnshire , Illinois, Bengaluru