Salesforce Tops Estimates as Q1 Sales Rise 30%

Salesforce shares fell in after-hours trading Thursday after the customer-relationship management software maker reported better-than-expected quarterly results but issued light guidance.Salesforce had to make major changes during the first quarter in response to the coronavirus crisis, closing 1...

By Matthew Heller • May 29, 2020

Workday Beats Estimates on 23% Sales Growth

Workday’s shares rose in after-hours trading Wednesday as the enterprise software maker’s sales growth pushed earnings above analysts’ estimates despite the coronavirus crisis.For the first quarter, Workday reported revenue of $1.02 billion, up 23% from the year-ago period, while adjusted earning...

By Matthew Heller • May 28, 2020

Anatomy of a Short Attack

When a lengthy “short” report is published, a company’s stock price will almost often experience a near-term drop as momentum traders react to the allegations. Billions of dollars can hang in the balance as investors sift through a densely written report posted on a website. In some cases, the pu...

By Vincent Ryan • May 26, 2020

Deere Shares Drop Despite Q2 Earnings Beat

Deere & Co. reported better-than-expected quarterly results on Friday but its shares fell as it slashed its profit guidance for the year.For the second quarter, the company’s equipment sales fell 20% to $8.22 billion — compared to Wall Street estimates of $7.69 billion — with farm equipment (...

By Matthew Heller • May 25, 2020

Insurers Float Pandemic Coverage Plan

Three major insurance industry groups have proposed a federal program that would protect businesses against losses suffered from future pandemics.Under the Business Continuity Protection Program (BCPP), companies could purchase revenue replacement for three months’ relief for up to 80% of payroll...

By Lauren Muskett • May 22, 2020

HPE Has ‘Tough’ Quarter With 16% Sales Drop

Hewlett Packard Enterprise shares dipped in after-hours trading Thursday after the computing giant reported a 16% drop in quarterly revenue, reflecting supply chain disruptions caused by the coronavirus pandemic.HPE’s revenue for the second quarter declined to $6 billion from $7.1 billion in the ...

By Matthew Heller • May 22, 2020

Shopping Shifts Squeeze Target Profit in Q1

Target reported strong sales for the first quarter but its profit was squeezed as consumers shifted to online shopping and avoided higher-margin items such as apparel.Amid the coronavirus pandemic, Target’s revenue rose 11.3% to $19.62 billion, with same-store sales increasing 10.8% and digital s...

By Matthew Heller • May 20, 2020

Rolls-Royce to Cut 9,000 Jobs Amid Coronavirus Crisis

Rolls-Royce is cutting at least 9,000 jobs as part of what the company called a “major reorganization” of its business to address medium-term structural changes brought on by the COVID-19 pandemic, which has dramatically reduced customer demand.“We have already taken action to strengthen the fina...

By Lauren Muskett • May 20, 2020

Senate May Vote on Oversight of Chinese Issuers

The U.S. Senate could be nearing a vote on a bipartisan measure that would require Chinese companies listed on U.S. stock exchanges to comply with U.S. auditing and reporting requirements.Chinese companies that trade their shares in the U.S. are currently exempt from being audited by accrediting ...

By Matthew Heller • May 20, 2020

Walmart Gets Big Boost From Pandemic Panic

Walmart sales surged in the first quarter amid unprecedented demand for grocery staples and cleaning supplies from consumers panicked by the coronavirus pandemic.Visits to Walmart stores declined as customers stayed home. When they did venture out to shop, they spent more, with spending per trans...

By Matthew Heller • May 19, 2020

SoftBank Posts Record $12.7B Operating Loss in 2019-20

SoftBank Group reported its earnings for the financial year between April 2019 to March 2020 on Monday.The Japanese investment firm reported an annual operating loss of $12.7 billion. This compares with the $19.3 billion operating profit it posted in the similar period a year ago.SoftBank posted ...

By Lauren Muskett • May 18, 2020

Video Game Sales Hit Record $10.8B in Q1

Video game sales are soaring as Americans seek diversion and social connection while confined to their homes by the coronavirus pandemic.NPD Group reported Friday that consumer spending on video gaming in the U.S. reached a record $10.86 billion in the first quarter of 2020, an increase of 9% fro...

By Matthew Heller • May 15, 2020

Denny’s Off-Premise Sales Soften COVID Impact

Denny’s shares jumped in after-hours trading Thursday after the restaurant chain reported better-than-expected earnings despite losing its dine-in business to coronavirus shutdowns.For the first quarter ended March 25, Denny’s earned net income of $9 million, or 16 cents a share, compared with ne...

By Matthew Heller • May 15, 2020

SmileDirect Sees Telehealth Boost From COVID

SmileDirectClub posted lower-than-expected quarterly results but said its business would benefit from growing consumer acceptance of teledentistry amid the coronavirus crisis.For the first quarter, the company lost $107 million, or 28 cents a share, compared with a loss of $20.5 million in the ye...

By Matthew Heller • May 14, 2020

Sony Profit Dives in Q4 as Virus Hits Electronics

Sony reported an 86% plunge in quarterly net profit on Wednesday, with its electronics products business being particularly hard hit by the coronavirus pandemic.For the fourth quarter, Sony’s net income declined to 12.6 billion yen ($118 million) from 87.9 billion yen earned a year ago. Operating...

By Matthew Heller • May 13, 2020

Fluor Shares Dive on News of 10-Q Delay

Fluor Corp. shares tumbled nearly 13% on Tuesday after the engineering firm, which is facing investigations into its accounting, disclosed another delay in the filing of financial reports.Fluor said it had determined it would be unable to file its Form 10-Q for the first quarter on time “without ...

By Matthew Heller • May 13, 2020

Six Priorities for Travel CFOs During the COVID-19 Pandemic

The COVID-19 pandemic has caused an unprecedented crisis in the travel industry. Major US airlines have eliminated as much as 40% of domestic flying and canceled most international flights. To help US carriers avoid bankruptcy, the government has approved $58 billion in aid. Hotel occupancy rates...

By Vincent Ryan • May 12, 2020

Marriott Takes Revenue Hit From Empty Rooms

Marriott International’s first-quarter earnings were well below estimates as a key revenue metric plunged due to the coronavirus-fueled collapse in demand for hotel rooms.The pandemic has forced the operator of the Marriott, Ritz-Carlton and St. Regis chains to close roughly a quarter of its hote...

By Matthew Heller • May 11, 2020

Multinationals Derive Huge Benefits From Shifting R&D Abroad

When the Tax Cut and Jobs Act (TCJA) was signed into law by President Trump in December 2017, its steep reduction of the U.S. corporate tax rate from 35% to 21% addressed what was widely considered the principal factor in companies’ shifting investments and profits abroad — namely, the disparity ...

By Vincent Ryan • May 11, 2020

Major US Automakers Plan to Return to Work May 18

Automakers such as General Motors, Ford, and Tesla are planning to reopen factories with enhanced safety precautions.General Motors workers in Flint, Saginaw, and Bay City, Michigan, are likely to return to work next week.Every GM employee will receive a “back-to-work” package containing five fac...

By Lauren Muskett • May 11, 2020

Intuit Warns of Revenue Hit From Virus Crisis

Intuit shares fell in after-hours trading Thursday after the tax-preparation software firm forecast revenue would decline sharply in the third quarter due to the coronavirus pandemic.Intuit said it expected revenue to fall approximately 8% to between $2.99 billion and $3 billion, citing the negat...

By Matthew Heller • May 8, 2020

Senators Push for Clarity on Payroll Support After Airlines Threaten Cuts

Lawmakers are urging the Secretary of the U.S. Treasury, Steven Mnuchin, to block U.S. airlines from laying off workers or cutting pay after they received support to cover payroll under the CARES Act.Under the legislation, intended to reduce economic trauma brought on by the coronavirus pandemic,...

By Lauren Muskett • May 8, 2020

Gilead Works to ‘Maximize Global Supply’ Of Coronavirus Candidate Remdesivir

Gilead Sciences recently received emergency use authorization from the FDA for its coronavirus treatment candidate remdesivir.The company now faces a conundrum: either mass-produce the drug to satisfy the rising global demand or license the drug to others, surrendering some of the windfall for wh...

By Vincent Ryan • May 6, 2020

GM Banks on Cash Hoard to Ride out Pandemic

General Motors reported a sharp drop in quarterly profit on Wednesday but its share rose 3% amid optimism over its ability to weather the coronavirus crisis.The pandemic cost the largest U.S. automaker $1.4 billion before taxes during the first quarter, with net profit sliding 86.7% to $294 milli...

By Matthew Heller • May 6, 2020

Disney Earnings Plunge Amid Park Closures

Walt Disney’s profit tumbled 63% in the second quarter as its theme park business took a $1 billion hit to operating income due to coronavirus-related closures.For the quarter ended March 31, Disney posted earnings of 60 cents per share, down from $1.61 a year earlier and below analysts’ estimate...

By Matthew Heller • May 6, 2020