NEW YORK - Worries about the US-China trade war are running high during the current US quarterly reporting season, with companies as diverse as Juniper Networks and O'Reilly Automotive bemoaning the consequences but saying they are finding ways to weather the storm.
Many of those corporations outlined to investors their plans to minimise the impact of the trade war, which has added to uncertainty as they struggle with a sluggish global economy, including lackluster economies in Europe and Japan. Of S&P 500 components that have reported their second-quarter earnings, export-focused companies have beaten analysts'expectations 77% of the time, while companies focused on the domestic economy have exceeded expectations just 66% of the time, according to an analysis by Credit Suisse.
Third-quarter earnings expectations have now turned negative, however, with earnings expected to decline 0.6% from a year ago, based on Refinitiv's data. "We are being watchful of the potential tariff that may be implemented, and if implemented, would impact the entire toy industry. We have contingency plans in place and we're working closely with the retailers to ensure that we are aligned on our approach to mitigate the tariffs," Mattel CEO Ynon Kreiz said on a conference call last week.