Corporate America Shows Troubling Hit From Dollar’s Epic Surge
- P&G, Netflix warnings add to FX concerns voiced in recent days
- Dollar headwinds may undercut optimism about earnings beats
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Multiple large companies are highlighting the impact of the ever-stronger dollar on profits. That may undercut the optimism generated so far by a string of better-than-expected earnings which has been supporting equities prices.
Take results from Procter & Gamble Co. The company said FX (along with higher material and commodity costs) would likely add an extra hit of $3.9 billion after tax this year, a jump from prior guidance. Other firms flagging FX pressure in recent days include Netflix Inc., Adobe Inc. and Johnson & Johnson.