Zebra Technologies' 2025 forecast hit by tariffs uncertainty; shares drop
Technology
Zebra Technologies' 2025 forecast hit by tariffs uncertainty; shares drop
(Reuters) - Barcode scanner-maker Zebra Technologies forecast full-year 2025 revenue growth below Wall Street estimates on Thursday due to the effects of US trade restrictions, sending the company's shares sliding 9% in premarket trading.
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.
