Tariff Refunds Spark Earnings Growth for Major US Companies
Major US companies are benefiting from tariff refunds, which are significantly boosting their reported earnings.
According to the Wall Street Journal, Apple alone disclosed nearly $2.2 billion in refunds, adding 11 cents per share to its most recent quarter's earnings, about 5% of the quarter's total.
Other major companies also received large refund payments: Nike got $986 million, FedEx received $800 million, Amazon.com was paid $640 million, and General Motors Co. received $500 million.
Gene Munster remains optimistic about Apple's prospects despite a recent downgrade from Jefferies, which shifted its rating to Underperform from Hold and reduced its price target to $263.66 from $285.56.
Munster believes the stock is undervalued and anticipates a strong upgrade cycle for high-end iPhones, potentially boosting average sale prices.