EPS And Currency Risk

A recent report using results from 78 companies that do business abroad and quantified currency losses showed that these companies lost a combined $4.18 billion during the third quarter of 2013. The currencies that most affected earnings were the Japanese yen, Australian dollar, euro, and Indian rupee. Although that sounds bad, the reported loss in earnings during the 3rd quarter of 2012 due to currency fluctuations was $22.73 billion. The average loss in EPS by companies reporting currency losses was $.03.