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


  • World
  • Wednesday, 04 Mar 2020

FILE PHOTO: A man wears a mask as he crosses a street in a business district in Beijing, as the country is hit by the novel coronavirus outbreak, China, March 2, 2020. REUTERS/Thomas Peter/File Photo

(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.

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 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 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 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.

** New York Times Co said it expects digital ad sales to decline by 10% in the first quarter of fiscal 2020 as it sees a slowdown in advertising bookings due to uncertainty and anxiety around the virus.

** Electronic manufacturing services company Plexus Corp warned of a nearly $40 million hit to its current- quarter revenue due to workforce disruptions within supply chain.

** Chipmaker Qorvo Inc forecast revenue of about $770 million for the March quarter, or $50 million below the midpoint of its prior outlook, citing a more-than-anticipated impact of the coronavirus outbreak on the smartphone supply chain and customer demand.

** Canada Goose Holdings Inc forecast an annual revenue hit of up to C$51.6 million.

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

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

** Ralph Lauren Corp 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 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)

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