Zebra Technologies forecast misses on uncertainty in costs as tariff impact looms

Rewrites and adds quotes from CEO throughout

By Rishi Kant

Feb 13 (Reuters) - Zebra Technologies ZBRA.O on Thursday forecast 2025 profit below Wall Street estimates, becoming the latest company to highlight the impact of tariffs on its earnings.

A number of companies in the U.S. including Ford and Coca- Cola have pointed to disruptions and additional costs after U.S. President Donald Trump announced steep tariffs on certain imports from Canada, Mexico and China.

Zebra expects a full-year adjusted profit of $14.75-$15.25 per share, below analysts' estimate of $15.89 per share.

"While the macro environment currently remains positive, the lack of visibility on geopolitical and global trade indicators can negatively affect it," Zebra CEO Bill Burns told Reuters in an interview.

Despite all its measures to minimize the impact of tariffs, Zebra expects a $20 million hit to its full-year adjusted EBITDA — or earnings before interest, taxes, depreciation and amortization.

"The $10 million hit is from China and the other from Mexico. But have these measures not been in place, we would be looking at a hit of $60 million," said Burns.

Zebra's lower-than-expected full-year revenue growth outlook was also weighed down by a strengthening dollar.

The barcode scanner-maker expects its full-year revenue to increase between 3% and 7%, which is less than analysts' estimate of an increase of 8.2%, according to data compiled by LSEG.

"Our forex revenue is largely driven by the euro, but Asia is significant as well, with more than 20% revenue share," Burns said.

However, Zebra's first-quarter revenue growth forecast of 8-11% was largely above estimates, mostly driven by large order activity by retailers.

The company's 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.