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.