Zebra Technologies' 2025 forecast hit by tariffs uncertainty; shares drop (updated)

Zebra Technologies

13/02/2025 14:47

(Updates shares at open)
       Feb 13 (Reuters) - Barcode scanner-maker Zebra
Technologies  ZBRA.O  forecast full-year 2025 revenue growth
below Wall Street estimates on Thursday due to the effects of
U.S. trade restrictions, sending the company's shares down 6.4%
in early trade.
    Zebra said it expects its full-year revenue to increase
between 3% and 7%, which is less than analysts' average estimate
of an increase of 8.2%, according to data compiled by LSEG.
    Its first-quarter revenue growth forecast of 8%-11%, though,
was largely above analysts' estimate of 8.2%.
    With President Donald Trump imposing trade tariffs on
multiple countries, industrial customers could stockpile
products before the levies kick in, potentially giving companies
such as Zebra a surge in short-term demand.
    However, Zebra says that while less than 50% of the products
shipped to the U.S. are made in China, the majority are from
Malaysia, Vietnam and Mexico, the last of which faces a
suspended 25% tariff rate.
    The Lincolnshire, Illinois-based company said that despite
all its measures to minimize the impact of tariffs, it expects a
$20 million hit to its full-year adjusted EBITDA -- or earnings
before interest, taxes, depreciation and amortization.
    Zebra expects a full-year adjusted profit of $14.75-$15.25
per share, below analysts' estimate of $15.89 per share.
    However, its fourth-quarter profit of $4 per share beat
estimates of $3.94 and its revenue of $1.33 billion was also
above analysts' estimate of $1.32 billion. 

 (Reporting by Rishi Kant in Bengaluru; Editing by Pooja Desai
and Savio D'Souza)
 ((Rishi.Kant@thomsonreuters.com;))