The US Dollar's Impact on Earnings Written by Kathy Lien, Chief Strategist With earning season upon us, everyone from investment banking analysts to longer term investors are scouring data on existing and new product lines for any information on this quarter’s potential sales and profits.Most likely, unless they have inside information, everyone in the market is looking at the same news releases. However, there is one consideration that rarely pops into the mind of the American investor but can mean the difference between a good quarter and a bad one – the impact of Currency fluctuations on a company’s bottom line. Too many times, companies that are expected to report good earnings for the quarter, disappoint due to either a currency’s depreciation or appreciation during those three months as good sales are offset by adverse conversion rates. We have already seen countless examples of this and with many earnings reports still due for release, smart investors m...
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