Tesla, LVMH Earnings Show How China Impact Is Anyone’s Guess
- LVMH, Tesla, Porsche reflect uneven China effect on earnings
- Erratic growth patterns, policies complicating analysts’ task
A screen displays stock figures in Shanghai.
Photographer: Raul Ariano/BloombergThis article is for subscribers only.
A floundering economy and an increasing propensity for out-of-the-blue policy shifts are making it ever tougher to predict whether China will bring pain or gain for Western companies’ future earnings.
The latest season has highlighted like never before the uneven outcomes for companies exposed to China’s $18 trillion economy. At Tesla Inc., Porsche AG, Remy Cointreau SA and a host of others, the impact of China’s slowdown was clear to see. At others like luxury goods maker LVMH and chipmaker ASML Holding NV, China sales still remain buoyant.