Monday, October 26, 2015

"Condor Predicts": About 7% Headwind From Currency Translation -- At Merck's Sales Line, Tomorrow Morning

We may see some good hedging out of Kenilworth's finance folk -- so I'll bring the bubble up a bit -- but I'll lean heavily on the recent J&J Q3 2015 earnings release. . . to guess at an approximate 7 per cent downdraft effect in Merck's sales, due solely to currencies.

To be clear, I expect Merck to post sales growth, operationally, but that growth will be materially trimmed (by about seven per cent), at the sales line due to a strong US dollar, and weaker euro and Yen primarily. It is just my guess -- but here is the J&J Q3 2015 earnings press releasse -- as filed with the SEC last week:

. . . .[J&J] today announced sales of $17.1 billion for the third quarter of 2015, a decrease of 7.4% as compared to the third quarter of 2014. Operational sales results increased 0.8% and the negative impact of currency was 8.2%. Domestic sales decreased 0.6%. International sales decreased 13.7%, reflecting operational growth of 2.1% and a negative currency impact of 15.8%. . . .

So -- have a great evening, one and all -- I'll cover any surprises, maƱana!


Condor said...

Well -- currencies were a per cent worse than I guessed, and sales were a slight miss, but with a five penny "beat" at the EPS line, and a bumped up full year forecast. . . Merck looks to be in pretty good shape.

Namaste, all -- and good morning!

Anonymous said...

Agree that it was a pretty good report for MRK.