INTC & JNJ: Meet EPS thanks to dollar exchange rates

Yet again, we see top US companies meet their EPS solely because of currency conversions

INTEL
* 60% of sales are from Asia
* 19% of sales are from EU
* dollar this year vs last year added 14% in currency conversions
* 9% increase in sales is actually a fall when the dollar currency transaction gains are included

The weak dollar has some impact on boosting PC sales, but only minimally
- As a virtual monopoly, INTC isn't gaining market share because they are cheaper compared with a competitor
- the decision to buy a PC or not is barely affected by the INTC cost

The point: the dollar currency transaction gains stop in 5 months. That is when the dollar exchange rates will be the same as last year.
Suddenly, $1B in revenue gains each quarte will disappear, and so will the earnings

JOHNSON & JOHNSON
"Favorable currency exchange rates due to the weak dollar accounted for almost two-thirds of the increased sales"
Sales were $16.45 billion, up 9% or $1.36B. Of that $1.3B, ~$1B came from dollar conversions.

http://www.mercurynews.com/business/ci_9886176