Wall Street Breakfast
Tariff risk flagged as earnings season heats up
Apr 22, 2025
Tariff uncertainty is hitting major players like GE, Kimberly-Clark, and 3M hard. With U.S. tariffs soaring as high as 3,521% on solar imports, companies are bracing for the financial fallout. Meanwhile, Big Pharma is feeling the heat from the White House's drug price plan. The discussion also dives into Amazon's recent stock struggles, highlighting concerns about the broader economic landscape.
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Quick takeaways
- Companies like GE and 3M anticipate substantial financial impacts from tariffs, with projections suggesting significant reductions in profits per share.
- Shifts in U.S. trade policies and proposed drug pricing reforms are creating market uncertainties that could affect overall corporate profitability.
Deep dives
Impact of Tariffs on Earnings Reports
Companies are increasingly highlighting the negative impact of tariffs on their financial performance as earnings season progresses. GE Aerospace reported significant revenue growth for the first quarter of 2025 while maintaining its annual guidance, but acknowledged that tariffs would lead to increased costs for both the company and its suppliers. Similarly, 3M provided a positive earnings update but warned that tariffs could reduce projected profits for the year by 20 to 40 cents per share. These examples underscore the broader trend of businesses taking proactive measures to manage tariff-related challenges while attempting to meet investor expectations.
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