A rising value in the U.S. dollar is a major factor that can affect corporate earnings in a negative way, according to Market Realist. Changing technologies and changes in government regulations can also hurt corporate earnings, according to U.S News & World Report.
The company Oracle reported that its fourth-quarter net income fell 2.7 percent in 2014, reports Market Realist. If it weren't for changes in currency values, Oracle's net income would have experienced 7 percent growth for that quarter. In early 2015, 49 firms in the S&P 500 warned that the rising dollar would soon cause their corporate earnings to suffer.
When the U.S dollar rises, this negatively affects companies that are most dependent on exports, says Market Realist. This leads stock analysts to revise their estimates for expected future earnings. Major companies harmed when the dollar rises include Coca-Cola, McDonald's and Hewlett Packard. In 2015, the dollar's value gained 25 percent as compared to an assortment of major national currencies, such as the euro.
Companies sometimes face huge lawsuits, the loss of which can seriously effect corporate earnings reports, according to Investopedia. Corporate earnings are generally defined as after-tax income. Under U.S. law, every publicly held company must accurately disclose its income and earnings, says U.S News & World Report.