On February 13, Barcode scanner manufacturer Zebra Technologies predicted a lower full-year revenue growth for 2025 compared to Wall Street's projections due to the impact of U.S. trade limitations. Consequently, the company's shares fell by 6.4% in early trading.
Zebra stated an expected revenue increase of 3% to 7% for the full year, falling short of analysts' average estimate of 8.2%. Despite this, the company's first-quarter revenue growth forecast of 8%-11% exceeded the analysts' 8.2% estimate.
President Donald Trump's imposition of trade tariffs on various countries may have prompted industrial customers to stockpile goods before tariff implementation, potentially causing a temporary spike in demand for companies like Zebra.
Although Zebra mentioned that less than half of its products shipped to the U.S. are manufactured in China, a significant portion originates from Malaysia, Vietnam, and Mexico, the latter facing a suspended 25% tariff rate.
Zebra, headquartered in Lincolnshire, Illinois, indicated that despite its efforts to mitigate tariff impacts, it anticipates a $20 million reduction in its full-year adjusted EBITDA.
The company projects an adjusted profit of $14.75-$15.25 per share for the year, falling short of the estimated $15.89 per share by analysts. Nonetheless, Zebra's fourth-quarter earnings of $4 per share exceeded the $3.94 estimate, and its revenue of $1.33 billion surpassed the estimated $1.32 billion.