Nestle SA, the world’s biggest food company, had its 2011 earnings per share estimate cut by Sanford C. Bernstein on concern the strong Swiss franc will hurt profit growth.
The EPS estimate was trimmed 8 percent to 3.65 Swiss francs ($3.82) a share, according to a note today by Andrew Wood, a Sanford analyst. Wood estimates that the strong franc will cut 5 percent from Nestle’s sales and profit. In May he had expected a benefit.
Sanford also cut EPS estimates for Unilever NV, Groupe Danone SA, L’Oreal SA and Henkel AG & Co. KGaA, by 4 percent each.
“Foreign exchange headwinds are coming back,” Wood wrote in today’s note.