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Barcode scanner maker Zebra Tech expects up to $30 million tariff impact on Q2 profit
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Barcode scanner maker Zebra Tech expects up to $30 million tariff impact on Q2 profit
May 25, 2025 8:53 PM

April 29 (Reuters) - Zebra Technologies ( ZBRA ) on

Tuesday projected lower-than-expected second-quarter profit,

anticipating a quarterly impact of $25 million to $30 million

from tariffs imposed by the Trump administration.

The barcode scanner maker became the latest firm to

highlight pressure from U.S. tariffs, as it reduced its 2025

earnings forecast due to related costs of about $70 million for

the year, up from the $20 million anticipated just two months

ago.

Corporate America is racing to mitigate the impact of

tariffs, which are driving up costs and squeezing margins across

industries, leading companies such as automaker General Motors ( GM )

and footwear brand Skechers to withdraw their

forecasts amid growing trade uncertainty.

Still, shares of Zebra jumped 6.4% in early trading after it

handily beat the first-quarter profit estimate on the back of

strong demand and tight cost control.

It reported adjusted earnings per share of $4.02 in the

quarter ended March 29, while analysts expected a profit of

$3.62 per share, according to data compiled by LSEG. Net sales

of $1.31 billion topped the estimate of $1.29 billion.

"Demand trends have continued to be positive into the second

quarter," CEO Bill Burns said.

The Lincolnshire, Illinois-based company, which sources and

manufactures globally, expects adjusted core profit margin to be

roughly 19% in the second quarter, down from 22.3% in the first

quarter.

Zebra projected second-quarter adjusted earnings per share

between $3.00 and $3.50, compared with the analysts' estimate of

$3.52. It expects sales growth of 4% to 7% for the period, the

midpoint of which is marginally above the estimate of 5.2%.

The company trimmed its full-year adjusted earnings forecast

to a range of $13.75 to $14.75, down from a prior estimate of

$14.75 to $15.25.

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