Latest news with #LeviStrauss
Reuters
7 days ago
- Business
- Reuters
Dollar's dive offsets tariff sting for some US bellwethers
July 22 (Reuters) - A slump in the dollar has come to the rescue of some major multinational U.S. companies this earnings season, easing the sting from President Donald Trump's tariffs that have driven up costs and upended financial planning. A weaker dollar enhances the value of foreign earnings of U.S. companies, while also making American exports more competitive. Companies such as Levi Strauss (LEVI.N), opens new tab, Netflix (NFLX.O), opens new tab, Pepsi (PEP.O), opens new tab and 3M (MMM.N), opens new tab, which generate significant revenue from overseas sales, reported a boost to their April-June earnings or raised their annual forecasts due to the slump in the dollar. The greenback has lost, opens new tab about 10% this year, due to rapidly changing U.S. trade policy and worries about growth and ballooning government debt. Last week, PepsiCo, which relies on international business for about 40% of its total net revenue, forecast a smaller annual profit drop helped by a weaker dollar. The dollar weakness "can be another source of upside that helps solidify the narrative of a very solid earnings season," said Angelo Kourkafas, senior global investment strategist at Edward Jones. "However, there is a limit to how much credit investors will give to companies that demonstrate a large upside surprise to estimates just driven by currency trends." Based on two decades of data, every 1% depreciation in the dollar historically improves S&P 500 earnings per share growth by about 0.6 percentage points, according to LSEG data. Roughly 38% of S&P 500 revenue is derived from international markets. Information technology (.SPLRCT), opens new tab, consumer discretionary (.SPLRCD), opens new tab, health care (.SPXHC), opens new tab and industrial (.SPLRCI), opens new tab companies have the highest international exposure. "We originally expected over $100 million of headwinds from a strengthening dollar and the reverse has happened," medical equipment maker Edward Lifesciences (EW.N), opens new tab CFO Scott Ullem said at a Jefferies conference on June 4. Still, a forex tailwind isn't always enough to reassure investors, who are looking out for signs of real growth as skittish consumers curb spending. Investors typically do not reward FX-driven sales beats the way they reward constant-currency beats, Goldman Sachs strategists said in a note. "In many ways, investors should consider some of these things as transitory or one-time adjustments that are not sustainable," said Michael Arone, chief investment strategist at State Street Investment Management. Netflix (NFLX.O), opens new tab shares declined more than 4% on Friday as some investors were disappointed by a revenue forecast raise that was driven more by a weaker dollar than strong demand. Here's a list of some the companies that noted a currency-related impact in their latest earnings:
CTV News
7 days ago
- Business
- CTV News
Windfall for multinational U.S. firms as U.S. dollar takes a dive
A newly printed U.S. dollar bill is shown at the Bureau of Engraving and Printing's Western Currency Facility in Fort Worth, Texas. (AP Photo/LM Otero, File) A slump in the U.S. dollar has come to the rescue of some major multinational U.S. companies this earnings season, easing the sting from U.S. President Donald Trump's tariffs that have driven up costs and upended financial planning. A weaker dollar enhances the value of foreign earnings of U.S. companies, while also making American exports more competitive. Companies such as Levi Strauss, Netflix, Pepsi and 3M, which generate significant revenue from overseas sales, reported a boost to their April-June earnings or raised their annual forecasts due to the slump in the dollar. The greenback has lost about 10 per cent this year, due to rapidly changing U.S. trade policy and worries about growth and ballooning government debt. Last week, PepsiCo, which relies on international business for about 40 per cent of its total net revenue, forecast a smaller annual profit drop helped by a weaker dollar. The dollar weakness 'can be another source of upside that helps solidify the narrative of a very solid earnings season,' said Angelo Kourkafas, senior global investment strategist at Edward Jones. 'However, there is a limit to how much credit investors will give to companies that demonstrate a large upside surprise to estimates just driven by currency trends.' Based on two decades of data, every one per cent depreciation in the dollar historically improves S&P 500 earnings per share growth by about 0.6 percentage points, according to LSEG data. Roughly 38 per cent of S&P 500 revenue is derived from international markets. Information technology, consumer discretionary, health care and industrial companies have the highest international exposure. 'We originally expected over $100 million of headwinds from a strengthening dollar and the reverse has happened,' medical equipment maker Edward Lifesciences CFO Scott Ullem said at a Jefferies conference on June 4. Tailwind not enough Still, a forex tailwind isn't always enough to reassure investors, who are looking out for signs of real growth as skittish consumers curb spending. Investors typically do not reward FX-driven sales beats the way they reward constant-currency beats, Goldman Sachs strategists said in a note. 'In many ways, investors should consider some of these things as transitory or one-time adjustments that are not sustainable,' said Michael Arone, chief investment strategist at State Street Investment Management. Netflix shares declined more than four per cent on Friday as some investors were disappointed by a revenue forecast raise that was driven more by a weaker dollar than strong demand. Here's a list of some the companies that noted a currency-related impact in their latest earnings: Company Ticker Currency Impact Additional Notes 3M Positive impact from weaker USD Q2 profit: $2.16/share vs. $2.01 estimate BlackRock Positive FX impact of $171.52 billion on AUM Compared to $35.45B decline YoY Garmin Positive benefit from FX shifts Raised full-year revenue growth guidance to 15% Omnicom FX translations led to 1.1% revenue increase Q2 revenue boost Concentrix Expected ~140 bps positive FX impact for Q3 Compared to previous year BNY Favorable FX impact contributed to 13% rise in assets under custody/admin Driven by market values, inflows, and weaker USD (Reporting by Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty)
Yahoo
7 days ago
- Business
- Yahoo
Windfall for multinational US firms as dollar takes a dive
By Shashwat Chauhan (Reuters) -A slump in the dollar has come to the rescue of some major multinational U.S. companies this earnings season, easing the sting from President Donald Trump's tariffs that have driven up costs and upended financial planning. A weaker dollar enhances the value of foreign earnings of U.S. companies, while also making American exports more competitive. Companies such as Levi Strauss, Netflix, Pepsi and 3M, which generate significant revenue from overseas sales, reported a boost to their April-June earnings or raised their annual forecasts due to the slump in the dollar. The greenback has lost about 10% this year, due to rapidly changing U.S. trade policy and worries about growth and ballooning government debt. Last week, PepsiCo, which relies on international business for about 40% of its total net revenue, forecast a smaller annual profit drop helped by a weaker dollar. The dollar weakness "can be another source of upside that helps solidify the narrative of a very solid earnings season," said Angelo Kourkafas, senior global investment strategist at Edward Jones. "However, there is a limit to how much credit investors will give to companies that demonstrate a large upside surprise to estimates just driven by currency trends." Based on two decades of data, every 1% depreciation in the dollar historically improves S&P 500 earnings per share growth by about 0.6 percentage points, according to LSEG data. Roughly 38% of S&P 500 revenue is derived from international markets. Information technology, consumer discretionary, health care and industrial companies have the highest international exposure. "We originally expected over $100 million of headwinds from a strengthening dollar and the reverse has happened," medical equipment maker Edward Lifesciences CFO Scott Ullem said at a Jefferies conference on June 4. TAILWIND NOT ENOUGH Still, a forex tailwind isn't always enough to reassure investors, who are looking out for signs of real growth as skittish consumers curb spending. Investors typically do not reward FX-driven sales beats the way they reward constant-currency beats, Goldman Sachs strategists said in a note. "In many ways, investors should consider some of these things as transitory or one-time adjustments that are not sustainable," said Michael Arone, chief investment strategist at State Street Investment Management. Netflix shares declined more than 4% on Friday as some investors were disappointed by a revenue forecast raise that was driven more by a weaker dollar than strong demand. Here's a list of some the companies that noted a currency-related impact in their latest earnings: Company Ticker Currency Impact Additional Notes 3M Positive impact from weaker USD Q2 profit: $2.16/share vs. $2.01 estimate BlackRock Compared to Positive FX $35.45B impact of $171.52 decline YoY billion on AUM Garmin Positive benefit Raised from FX shifts full-year revenue growth guidance to 15% Omnicom FX translations Q2 revenue led to 1.1% boost revenue increase Concentrix Expected ~140 bps Compared to positive FX previous impact for Q3 year BNY Favorable FX Driven by impact market contributed to values, 13% rise in inflows, and assets under weaker USD custody/admin Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Reuters
7 days ago
- Business
- Reuters
Windfall for multinational US firms as dollar takes a dive
July 22 (Reuters) - A slump in the dollar has come to the rescue of some major multinational U.S. companies this earnings season, easing the sting from President Donald Trump's tariffs that have driven up costs and upended financial planning. A weaker dollar enhances the value of foreign earnings of U.S. companies, while also making American exports more competitive. Companies such as Levi Strauss (LEVI.N), opens new tab, Netflix (NFLX.O), opens new tab, Pepsi (PEP.O), opens new tab and 3M (MMM.N), opens new tab, which generate significant revenue from overseas sales, reported a boost to their April-June earnings or raised their annual forecasts due to the slump in the dollar. The greenback has lost, opens new tab about 10% this year, due to rapidly changing U.S. trade policy and worries about growth and ballooning government debt. Last week, PepsiCo, which relies on international business for about 40% of its total net revenue, forecast a smaller annual profit drop helped by a weaker dollar. The dollar weakness "can be another source of upside that helps solidify the narrative of a very solid earnings season," said Angelo Kourkafas, senior global investment strategist at Edward Jones. "However, there is a limit to how much credit investors will give to companies that demonstrate a large upside surprise to estimates just driven by currency trends." Based on two decades of data, every 1% depreciation in the dollar historically improves S&P 500 earnings per share growth by about 0.6 percentage points, according to LSEG data. Roughly 38% of S&P 500 revenue is derived from international markets. Information technology (.SPLRCT), opens new tab, consumer discretionary (.SPLRCD), opens new tab, health care (.SPXHC), opens new tab and industrial (.SPLRCI), opens new tab companies have the highest international exposure. "We originally expected over $100 million of headwinds from a strengthening dollar and the reverse has happened," medical equipment maker Edward Lifesciences (EW.N), opens new tab CFO Scott Ullem said at a Jefferies conference on June 4. Still, a forex tailwind isn't always enough to reassure investors, who are looking out for signs of real growth as skittish consumers curb spending. Investors typically do not reward FX-driven sales beats the way they reward constant-currency beats, Goldman Sachs strategists said in a note. "In many ways, investors should consider some of these things as transitory or one-time adjustments that are not sustainable," said Michael Arone, chief investment strategist at State Street Investment Management. Netflix (NFLX.O), opens new tab shares declined more than 4% on Friday as some investors were disappointed by a revenue forecast raise that was driven more by a weaker dollar than strong demand. Here's a list of some the companies that noted a currency-related impact in their latest earnings:
Yahoo
7 days ago
- Business
- Yahoo
Windfall for multinational US firms as dollar takes a dive
By Shashwat Chauhan (Reuters) -A slump in the dollar has come to the rescue of some major multinational U.S. companies this earnings season, easing the sting from President Donald Trump's tariffs that have driven up costs and upended financial planning. A weaker dollar enhances the value of foreign earnings of U.S. companies, while also making American exports more competitive. Companies such as Levi Strauss, Netflix, Pepsi and 3M, which generate significant revenue from overseas sales, reported a boost to their April-June earnings or raised their annual forecasts due to the slump in the dollar. The greenback has lost about 10% this year, due to rapidly changing U.S. trade policy and worries about growth and ballooning government debt. Last week, PepsiCo, which relies on international business for about 40% of its total net revenue, forecast a smaller annual profit drop helped by a weaker dollar. The dollar weakness "can be another source of upside that helps solidify the narrative of a very solid earnings season," said Angelo Kourkafas, senior global investment strategist at Edward Jones. "However, there is a limit to how much credit investors will give to companies that demonstrate a large upside surprise to estimates just driven by currency trends." Based on two decades of data, every 1% depreciation in the dollar historically improves S&P 500 earnings per share growth by about 0.6 percentage points, according to LSEG data. Roughly 38% of S&P 500 revenue is derived from international markets. Information technology, consumer discretionary, health care and industrial companies have the highest international exposure. "We originally expected over $100 million of headwinds from a strengthening dollar and the reverse has happened," medical equipment maker Edward Lifesciences CFO Scott Ullem said at a Jefferies conference on June 4. TAILWIND NOT ENOUGH Still, a forex tailwind isn't always enough to reassure investors, who are looking out for signs of real growth as skittish consumers curb spending. Investors typically do not reward FX-driven sales beats the way they reward constant-currency beats, Goldman Sachs strategists said in a note. "In many ways, investors should consider some of these things as transitory or one-time adjustments that are not sustainable," said Michael Arone, chief investment strategist at State Street Investment Management. Netflix shares declined more than 4% on Friday as some investors were disappointed by a revenue forecast raise that was driven more by a weaker dollar than strong demand. Here's a list of some the companies that noted a currency-related impact in their latest earnings: Company Ticker Currency Impact Additional Notes 3M Positive impact from weaker USD Q2 profit: $2.16/share vs. $2.01 estimate BlackRock Compared to Positive FX $35.45B impact of $171.52 decline YoY billion on AUM Garmin Positive benefit Raised from FX shifts full-year revenue growth guidance to 15% Omnicom FX translations Q2 revenue led to 1.1% boost revenue increase Concentrix Expected ~140 bps Compared to positive FX previous impact for Q3 year BNY Favorable FX Driven by impact market contributed to values, 13% rise in inflows, and assets under weaker USD custody/admin Sign in to access your portfolio
