KKR Earnings Fall 18% in Q4 But Beat Estimates

KKR reported better-than-expected earnings as an increase in management fees helped offset a sharp drop in performance fees.For the fourth quarter, the private equity firm’s after-tax distributable earnings — the cash available for paying dividends to shareholders — fell to $375.1 million compare...

By Matthew Heller • Feb. 3, 2020

Altria Takes $4.1B Writedown on Juul Investment

Altria has taken a $4.1 billion writedown on its investment in Juul Labs following increased regulatory scrutiny and a backlash against vaping. Altria, the maker of Marlboro, Virginia Slims, and Parliament cigarettes, said the impairment was due to the increasing number of legal cases against Juu...

By Lauren Muskett • Jan. 30, 2020

Explore the Trendline➔

Tax policy shifts: What CFOs need to know to stay ahead

Discover how evolving tax policies are creating new opportunities and challenges for CFOs.

By CFO.com staff

Facebook Shares Drop 7% Despite Earnings Beat

Facebook beat quarterly estimates on both the top and bottom lines but slowing revenue growth and rising expenses appeared to weigh on investors.For the fourth quarter, the company earned $2.56 per share as revenue rose nearly 24.7% to $21.08 billion. Analysts had expected earnings of $2.53 per s...

By Matthew Heller • Jan. 30, 2020

GE Shares Surge 10% on Strong Q4 Cash Flow

General Electric shares jumped on Wednesday after it beat its own forecast for a key cash flow metric, boosting investor confidence in CEO Larry Culp’s turnaround plan.GE’s outlook for earnings in 2020 was below Wall Street estimates but fourth-quarter industrial free cash flow came in at $3.9 bi...

By Matthew Heller • Jan. 29, 2020

3M Stock Falls on Earnings Miss, New Layoffs

3M shares dipped on Tuesday after the company reported lower-than-expected earnings and more layoffs, reflecting declines in its industrial businesses amid slowing growth in China.As The Wall Street Journal reports, 3M is “the latest manufacturer to exhibit signs of strain at a time of weakness f...

By Matthew Heller • Jan. 28, 2020

Sprint Loses More Postpaid Phone Customers

Sprint delivered generally better-than-expected quarterly results on Monday but its shares fell amid a continued decline in postpaid phone subscribers and uncertainty over its proposed merger with T-Mobile.For the third quarter, the company lost 3 cents per share as group revenues slipped 6% to $...

By Matthew Heller • Jan. 27, 2020

Employees Criticize Amazon on Climate Policies Despite Risk to Jobs

Hundreds of Amazon employees have signed a Medium post criticizing the company’s external communications policy and its stances on social issues, including climate change, labor rights, and privacy.The post, which included statements from 357 Amazon employees, was published by the group Amazon Em...

By Lauren Muskett • Jan. 27, 2020

American Express Shares Jump on Revenue Gain

American Express shares rose to a record high on Friday after the company posted better-than-expected earnings and issued optimistic guidance for 2020.For the fourth quarter, American Express earned $2.03 per share as revenue increased 9% to $11.365 million. Analysts had expected earnings of $2.0...

By Matthew Heller • Jan. 24, 2020

P&G Sales Rise 4.6%, Price Hikes Boost Profit

Procter & Gamble missed revenue estimates for the first time in five quarters amid weak sales of baby and feminine care products but management remained confident in their turnaround efforts.For the second quarter, P&G’s net sales rose 4.6% to $18.24 billion, missing the average analyst e...

By Matthew Heller • Jan. 23, 2020

How CFOs Can Jumpstart Automation of the Close

The financial close is a necessary part of business, yet among the most arduous of tasks. Every month, organizations invest significant resources in closing systems, compiling reports, tending spreadsheets, reconciling data, booking entries, and assembling huge binders.How significant is this inv...

By Vincent Ryan • Jan. 23, 2020

Netflix Subscriber Growth in U.S. Misses Forecast

Netflix beat quarterly earnings estimates but missed its forecast for U.S. subscriber growth for the third straight quarter amid increasing competition.The streaming giant added 423,000 domestic subscribers in the fourth quarter, compared with its forecast of 600,000 additions and Wall Street est...

By Matthew Heller • Jan. 22, 2020

Halliburton Takes $2.2B Charge From Shale Slump

Halliburton swung to a loss in the fourth quarter as it took a $2.2 billion charge to earnings due to the slowdown in the U.S. shale market.As The Wall Street Journal reports, the rapid shale production growth of recent years has been “waning as shale companies, many of which have struggled to ma...

By Matthew Heller • Jan. 21, 2020

Media to Go Tech-Free in Data Release ‘Lockups’

The U.S. Department of Labor is changing the way it releases potentially market-moving information to the public, saying the current system gives an unfair advantage to high-speed traders.The new procedures bar reporters from using electronic devices in the secure “lockup” rooms from which they p...

By Matthew Heller • Jan. 20, 2020

Goldman Q4 Profit Dives as Expenses Jump 42%

Goldman Sachs missed quarterly earnings estimates as a $1.1 billion litigation charge and heavy spending on technology and compensation drove its operating expenses up 42%.For the fourth quarter, the bank’s revenue rose 23% to $9.96 billion, led by a 33% increase from global markets, by far its l...

By Matthew Heller • Jan. 16, 2020

Wells Fargo Misses Estimates as Profit Falls 55%

Wells Fargo’s profit dropped by more than half in the fourth quarter as low interest rates and litigation expenses weighed on its bottom line, offsetting its cost-cutting efforts.The results for the quarter ended Dec. 31 represented the first measure of the bank’s performance under Charles Scharf...

By Matthew Heller • Jan. 15, 2020

House Passes Bill to Close ‘8-K Trading Gap’

The House of Representatives overwhelmingly passed a bill to close a loophole that allows corporate insiders to trade company shares before the public disclosure of a significant corporate event.According to a 2015 study, the loophole has created an opportunity for insiders to make “meaningful” p...

By Matthew Heller • Jan. 15, 2020

Fired Boeing CEO to Depart with Potential $80 Million

Boeing chief executive officer Dennis Muilenburg, who was ousted from the company amid the crisis following the crashes of two 737 Max aircraft that killed 356 people, is leaving the company with $80 million in stock options and other assets.In October, the board of Boeing announced Muilenburg wa...

By Lauren Muskett • Jan. 13, 2020

CFOs On the Move: Week Ending January 10

Jenny Buchholz Captivate appointed Jenny Buchholz as the digital media company’s finance chief. In addition to leading finance, accounting, and human resources, Buchholz will serve as a financial and strategic business advisor to the CEO and broader leadership team. She joins the company from fle...

By Lauren Muskett • Jan. 10, 2020

WD-40 Shares Dive 4% as Sales Slump in China

WD-40 shares dipped in extended trading Thursday after the cleaning supplies company missed quarterly estimates amid lower sales of its Specialist lubricant and a sales slump in China.For the first quarter, WD-40 earned 88 cents per share, compared to 95 cents a year ago, as net sales declined 3%...

By Matthew Heller • Jan. 10, 2020

FEMA Disaster Preparedness Report Ignores Climate Change

The Trump administration’s National Preparedness Report, which describes the greatest risks and hazards to the country, did not mention climate change, sea-level rise, or drought. It was the first such report — prepared by the Federal Emergency Management Agency (FEMA) — to not acknowledge climat...

By Lauren Muskett • Jan. 8, 2020

Walgreens Shares Dive on Q1 Earnings Miss

Walgreens Boots Alliance shares fell more than 5% on Wednesday after the drugstore chain missed earnings estimates amid unexpectedly low prescription volume.For the first quarter, Walgreens’ net income fell 24.8% to $845 million, or 95 cents per share, as revenue rose 1.6% to $34.3 billion. On an...

By Matthew Heller • Jan. 8, 2020

Is It Time to Reevaluate the Wisdom of Brand Writedowns?

To reduce tax exposure, corporate finance and accounting organizations will occasionally consider making a noncash writeoff to an underperforming brand. Yet some writedowns permanently damage the brand and the outlook for long-term value appreciation.Unfortunately, accounting rules may cloud a fu...

By David McCann • Jan. 8, 2020

Cybersecurity 2020: Welcome to the Digital Cold War

In the year ahead, organizations must prepare for the unknown. They can do so by ensuring they have the flexibility to endure unexpected and high-impact cybersecurity events. Businesses will need to manage security risks in ways beyond those traditionally handled by the information security funct...

By Vincent Ryan • Jan. 8, 2020

Pier 1 to Close 450 Stores as Q3 Loss Widens

Pier 1 shares tumbled on Monday after the troubled retailer announced sales had dropped for a ninth straight quarter and it would close almost half its stores.For the third quarter, Pier 1’s net sales fell 13.3% to $358.4 million while its loss widened to $59 million, or $14.15 per share, from $5...

By Matthew Heller • Jan. 7, 2020

Break the Bad Habit of Overreacting to Metrics

CFOs, of course, play a key role in overseeing financial metrics and, increasingly, operational performance measures. They pay a great deal of much-needed attention to the question of what to measure. But an opportunity typically remains for getting better at evaluating metrics.The methods and mi...

By Mark Graban • Jan. 6, 2020