Headwinds from the ever-strengthening U.S. dollar may undercut optimism about earnings beats from Apple, due to report after the closing bell on October 27th, and other American corporations.
Felice Maranz for Bloomberg News:
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.
Even so, Netflix surged in Wednesday trading after returning to growth and adding customers, and P&G climbed after other metrics beat. P&G’s organic revenue growth — which excludes FX — topped estimates as the company was able to push price hikes of 9%. Expensive premium products (like single-dose laundry pods) were driving gains in the US, as affluent consumers are generally healthy and willing to spend.
MacDailyNews Take: Apple’s demographic.
Concern about the impact of a stronger dollar isn’t new. The last earnings season was also beset by caution about the ever-rising currency, with notable warnings coming from across industries. Microsoft Corp. in particular had set off alarm bells; earnings from that firm and fellow tech titans Alphabet Inc. and Apple Inc. are due next week.
MacDailyNews Take: Again, thanks to strong customer demographics, Apple will be the last to feel inflationary impact.
Apple will be the last and least affected by economic woes. The first and worst hit will be the outfits that peddle to low-end consumers, those most susceptible to high inflation and economic recession, with poor imitations of Apple wares: Windows PCs, Android phones and tablets, etc.
Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022
And the same goes for Mac, Apple Watch, and iPad customers.
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