The Australian dollar suffered on Wednesday, dropping half a US cent following weaker-than-expected quarterly inflation data. With the Aussie dollar looking to remain below US80 cents, offshore earning companies could provide Australian investors the relief they need.
Companies that report profit in foreign dollars, or offshore earners, provide opportunities that can offset the challenges of Australia's small economy and the inflow of foreign competition.
With that in mind, here are three offshore earners worth buying today:
Corporate Travel Management (ASX: CTD)
Corporate Travel is a provider of travel management solutions to the corporate market with a presence throughout Australia & New Zealand, the USA and Asia. Corporate Travel shares have consistently delivered in the last couple of years and have returned more than 600% to shareholders.
Corporate Travel's international businesses have performed strongly with North American EBITDA growing 28% and European EBITDA up a whopping 202% for FY 2017. Analysts forecast the company to deliver underlying EBITDA between $120 million to $125 million in the next financial year.
Corporate Travel is currently trading at a PE ratio of 39.2.
Treasury Wine Estates Ltd (ASX: TWE)
Treasury Wine Estates is a global wine company with an international portfolio of wines present in more than 70 countries. Last Monday the company's shares hit a record high of $15.23, an increase of almost 20% from August.
The company also unveiled the Penfolds g3 in Hong Kong this month as it continues to meet strong demand for Australian wines in the region. China remains Australia's most valuable wine market with exports increasing 42% on last year.
Treasury Wine currently trades at a PE ratio of 36.
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure operates as a developer, manufacturer and distributor of gaming content, platforms and systems in Australia, New Zealand, the Americas and Japan. Aristocrat Leisure reported net profit in its March 31 report of nearly $250 million, or 56.9% growth.
The company announced in August its acquisition of Israeli game developer Plarium for US$500 million. The acquisition expands Aristocrat's market from around US$3.2 billion to almost US$25.4 billion.
Aristocrat currently trades at a PE ratio of 28.9.
