Wall St. earnings estimates may not foretell currency impact

March 31, 2015 8:44 PM

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Wall St. earnings estimates may not foretell currency impact

(Reuters) - Wall street analysts may be inadequately accounting for the dollar’s sharp rise in the first quarter, setting up a scenario in which some multinationals may miss already low consensus estimates - and their shares sell off as a result.

Equity analysts admit they have had trouble keeping up with the dollar’s rapid 9 percent rise so far this year. While companies have issued forecasts mentioning “currency headwinds,” most Wall St. analysts are not updating their estimates to reflect those rapidly moving exchange rates.

Also read: U.S. motor travel up 1.5 percent in April from year ago: DOT

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