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(Reuters) -Zebra Technologies 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 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.
(Reporting by Meghana Khare; Editing by Vijay Kishore)
