Factbox: U.S. business forecasts earnings pressure as coronavirus spreads

(Reuters) – As the coronavirus epidemic spreads in China and beyond, U.S. companies will see profits stagnate in 2020, according to a Goldman Sachs report.

FILE PHOTO: People wearing protective masks wait for checking their temperature in an Apple Store, in Shanghai, China, as the country is hit by an outbreak of the novel coronavirus, February 21, 2020. REUTERS/Aly Song/File Photo

Several big names in the U.S. consumer and tech sectors have already warned of a hit from the rapid spread of the epidemic that has disrupted supply chains, hurt global travel and led to temporary shutdowns of businesses.

Here’s a list of some big names from Corporate America that have announced a financial impact from the outbreak.

** Apple Inc (AAPL.O) warned it was unlikely to meet its March-quarter sales forecast as the iPhone maker’s manufacturing facilities in China were ramping up slower than expected.

** Microsoft Inc (MSFT.O) said it does not expect to meet its quarterly revenue forecast for its Windows and personal computing business due to a hit to its supply chain.

** PC maker HP Inc (HPQ.N) said it factored in an 8 cents per share impact into its second-quarter profit outlook as it expects coronavirus outbreak to hit its businesses and supplies.

** Canada Goose Holdings Inc (GOOS.TO) (GOOS.N) forecast an annual revenue hit of up to C$51.6 million.

** Versace owner Capri Holdings Ltd (CPRI.N) warned of a $100 million hit from the outbreak and cut its annual revenue forecast.

** Estee Lauder Cos Inc (EL.N) trimmed its fiscal 2020 per-share earnings forecast, in part due to the impact from the outbreak.

** Ralph Lauren Corp (RL.N) has closed about two-thirds of its 110 stores in China and expects a $55 million to $70 million hit to its fourth-quarter sales in Asia.

** Coach handbag maker Tapestry Inc (TPR.N) warned of its second-half financial results being dented by about $200 million to $250 million in sales and 35 cents to 45 cents in earnings per share.

Reporting by Uday Sampath and Amal S in Bengaluru; Editing by Shailesh Kuber

Source: https://www.reuters.com/article/us-china-health-us-companies-factbox/factbox-u-s-business-forecasts-earnings-pressure-as-coronavirus-spreads-idUSKCN20L2YW

You may like

In the news
Load More