Companies: Obamacare is hurting our profit!

[a kennedy]

It's always something isn't it.....

Companies find all sorts of excuses during earnings season for disappointments, with the weather being an all-time favorite. But some companies are finding a new scapegoat: Obamacare.

Thirty companies in the Standard & Poor’s 500, including United Parcel Service, General Electric and retailer Dollar General, have mentioned the Affordable Care Act during their conference calls since March 1 and all through the first-quarter earnings season, says John Butters, analyst at financial data research firm FactSet.

Exactly half the companies that mentioned the Act are in the healthcare industry, where there’s a direct interaction with the new law. But in the other half, companies ranging from many industries discussed the fallout of the Affordable Care Act on their business.

Most of the companies talking about the law did so negatively, pointing out how it either hurts demand for their business or causes costs to increase. Consider a few examples:

* General Electric. The diversified manufacturer blamed the Affordable Care Act for the “soft” performance of its healthcare unit. GE said hospitals and clinics were delaying equipment purchases due to the law. General Electric reported first-quarter revenue of $34.2 billion, just shy of the $34.4 billion expected by analysts, says S&P Capital IQ. GE’s quarterly adjusted profit of 33 cents a share, though, beat Wall Street forecasts by 3%, says S&P Capital IQ.

* UPS. The shipping company cited changes in the healthcare laws, namely the Affordable Care Act, for driving up health-care costs for employees. To respond to the rising costs, UPS is moving its employees to a defined contribution health care plan, a change that will result in the company eventually booking a large one-time charge. UPS reported a quarterly profit of 98 cents a share, missing Wall Street forecasts by 9%, says S&P Capital IQ.

http://americasmarkets.usatoday.com/2014/05/08/obamacare-companies-new-earnings-scapegoat/

[Lex]

1. "We're not raking in as much dough because we have to care for our employees"

Boo hoo.

[alcibiades_mystery]

2. Too bad, so sad

A good society isn't free either.

[VanillaRhapsody]

3. Did GE or UPS pay ANY taxes at all this year?

I doubt it...soo....

Boo Hoo!

[Gothmog]

4. Healthcare costs are always going up

Healthcare costs tend to go up and have an impact on earnings. These healthcare costs would have gone up more without the Affordable Care Act.

[Initech]

5. Oh cue the sad Hulk music.

[rock]

6. If your company is not making enough profit

disband.