Kraft Heinz Protects Profit With Price Hikes

Kraft Heinz shares jumped more than 8% on Friday after the packaged food giant reported better-than-expected quarterly results and predicted improved profitability by the end of the year.Kraft Heinz’s net income fell to $756 million, or 62 cents per share, in the second quarter from $1.16 billion...

By Matthew Heller • Aug. 6, 2018

Tesla Shares Jump 16% Despite Record Loss

Tesla on Thursday posted a record quarterly loss but renewed assurances of profitability — and CEO Elon Musk’s more subdued behavior in an earnings call — helped push its shares to their biggest percentage gain since December 2013.For the second quarter, Tesla reported a loss of $718 million, or ...

By Matthew Heller • Aug. 3, 2018

Blue Apron Customers Eat Elsewhere

Shares of Blue Apron Holdings fell off a cliff on Thursday after the company reported lower-than-expected second-quarter revenue and said its volume of orders in the quarter contracted by 23%.The meal-kit-delivery firm’s woes in the 13 months after going public continued, with revenue falling to ...

By David McCann • Aug. 2, 2018

Study Finds Disturbing Evidence of Earnings Management

Do investors get a straight story about company earnings?It’s well known that the traditional way of measuring profits, by generally accepted accounting principles (GAAP), has been gradually, increasingly overshadowed by other metrics in company press releases, analyst forecasts, and clearinghous...

By David McCann • Aug. 2, 2018

Tax Options Abound for U.S. Multinationals

On the surface, U.S. multinational corporations say they are thrilled by the corporate tax cut approved by Congress last year. But in practice, the law has sparked more head-scratching than jubilation.In particular, details about what will constitute the optimal tax structure for corporations wit...

By Bill Henson • Aug. 1, 2018

P&G Beats Estimates, Announces Price Hikes

Procter & Gamble announced price increases on some of its key brands as rising shipping and commodity costs cut into its quarterly profit.The consumer products giant on Tuesday reported fourth-quarter core earnings of 94 cents per share, beating analysts’ estimates of 90 per share. But total ...

By Matthew Heller • Aug. 1, 2018

Pfizer Beats Estimates on Strength in Key Drugs

Pfizer reported better-than-expected quarterly earnings on Tuesday, driven in part by strong demand for its rheumatoid arthritis drug, but lowered its full-year outlook due to unfavorable exchange rates.For the second quarter, Pfizer’s net income was $3.87 billion, up 26% from a year earlier, and...

By Matthew Heller • July 31, 2018

Six Key Steps to a Successful Spinoff

Spinoffs are increasingly used for creating shareholder value as companies more frequently examine their portfolios and sharpen the focus on their core businesses and assets.These transactions, which involve separating an existing company’s businesses through the creation of one or more separate ...

By Tze-Liang Chiam and Lasida Klinsukond • July 31, 2018

Are Your Capital Allocations Strategic?

For many companies, the capital allocation process is where big strategic goals fizzle out. Companies aren’t wishing for that result, but most capital allocation processes are poorly equipped to deal with change.Frank Hopson, Fortuna Advisors Frank R. Hopson, CapitalA leading factor is that capit...

By Frank R. Hopson • July 30, 2018

Caterpillar Posts Record 2nd Quarter Profit

Caterpillar reported record second-quarter profit on strong demand for its equipment from the oil, gas, and mining sector while raising its full-year outlook for a second straight quarter despite rising costs due to tariffs.The heavy equipment maker said Monday that demand for oil, gas, and minin...

By Matthew Heller • July 30, 2018

The Labyrinths of Uncertainty Around Information Security

Information security threats are intensifying every day. Organizations risk becoming disoriented and losing their way in a maze of uncertainty, as they grapple with complex technology, data proliferation, increased regulation, and a debilitating skills shortage.The year 2020 will dawn on a hyper-...

By Information Security Forum and Steve Durbin • July 30, 2018

Exxon Earnings Hit by High Maintenance Costs

Exxon shares delivered another quarterly earnings miss on Friday as its refinery business was hit by “significant” maintenance costs and oil and gas production dipped by 7%.While Exxon’s profits jumped 18% to nearly $4 billion in the second quarter, earnings per share of 92 cents fell well short ...

By Matthew Heller • July 27, 2018

Chipotle Same-Store Sales Gain Boosts Stock

Chipotle Mexican Grill delivered a quarterly earnings report that buoyed investors as the burrito chain attempts to rebound from its food-safety crisis.Chipotle shares jumped 6.5% to $446.76 in extended trading Thursday after the company announced that same-store sales, a key industry metric, ros...

By Matthew Heller • July 27, 2018

McDonald’s Earnings Helped By European Sales, Lower Tax Rate

McDonald’s reported revenue of $5.35 billion for the second quarter, down 12% year-over-year, as it was hurt by a nationwide recall of salads at about 3,000 of its U.S. locations.But a lower effective tax rate and an increase in sales outside the United States —particularly in the United Kingdom ...

By William Sprouse • July 26, 2018

Overseas Sales Fuel Under Armour Q2 Beat

Under Armour’s North American sales remained sluggish in the second quarter but overall revenue beat analysts’ estimates amid continued strong overseas demand.The sneaker company reported Thursday that sales grew 8% to $1.17 billion for the April-to-June period, topping expectations for revenue o...

By Matthew Heller • July 26, 2018

Digital Lending Continues to Be a Magnet for Capital

Online lending appears to be a pretty crowded market at this point. But consumer and business debt levels keep building. That’s one reason why private capital providers continue to allocate funds to digital lending startups.On a global basis, alternative, nonbank lending, which includes business ...

By Vincent Ryan • July 26, 2018

Facebook Shares Dive on Revenue Weakness

Facebook shares plunged in extended trading Wednesday after the social media giant missed Wall Street revenue estimates for the first time in 11 quarters and gave a downbeat outlook for the remainder of the year.As Quartz reports, CEO Mark Zuckerberg had been warning that Facebook “would take a h...

By Matthew Heller • July 26, 2018

What Is a Critical Audit Matter?

Are you, your audit committee, or your auditor unclear about critical audit matters and their inclusion in the new auditor’s report? On Tuesday, the Center for Audit Quality published a “key concepts and FAQs” document addressing compliance with critical audit matters reporting.A critical audit m...

By Vincent Ryan • July 25, 2018

Appeals Court Backs IRS in Transfer-Pricing Case

A federal appeals court has delivered a major setback to Intel’s subsidiary Altera in a high-stakes legal battle over Treasury Department regulations governing the sharing of employee stock compensation costs between related entities.The IRS had issued notices of deficiency after Altera and an in...

By Matthew Heller • July 25, 2018

GM Lowers Earnings Expectations Due to Higher Raw Materials Costs

General Motors cut its profit outlook for the year, citing higher costs for steel and aluminum. Prices have risen since the Trump Administration imposed tariffs on the auto industry’s two key raw materials. The company lowered earnings expectations to about $6 per share for 2018, down from its pr...

By William Sprouse • July 25, 2018

Whirlpool Shares Dive 9% on Q2 Earnings Miss

Whirlpool shares fell sharply in extended trading on Monday after the appliance maker posted disappointing quarterly earnings amid weak sales in the region encompassing Europe, the Middle East and Africa (EMEA).After grappling with raw material inflation and declining unit volume last year, Whirl...

By Matthew Heller • July 24, 2018

Harley Beats Estimates, Warns of Tariff Costs

Harley-Davidson on Tuesday reported better-than-expected quarterly earnings but warned of declining profitability as it grapples with retaliatory European Union tariffs.The iconic motorcycle maker stepped into President Trump’s global trade war last month by announcing it would move more motorcyc...

By Matthew Heller • July 24, 2018

Unlock the Hidden Benefits of Lease Accounting Rules

Everyone in the accounting and finance world is inundated with information about the new lease guidance, from its effective date and primary financial statement impacts to the inherent complexities and best practices for a successful adoption.This flow of information confirms that, yes, the impac...

By Bill Maloney, Udit Sharma, and Patrick Garrett • July 23, 2018

Azure Cloud Growth Powers Microsoft Q4 Beats

Microsoft on Friday reported quarterly revenue and earnings that beat analysts’ estimates, powered by the continued momentum of its cloud business as well as strength in legacy software, tablets, and gaming.For the fourth quarter, the tech giant’s revenue jumped 17% to $30.09 billion while operat...

By Matthew Heller • July 20, 2018

GE Profits Plummet, But Hopeful Signs Appear

General Electric reported that its second-quarter profit was down 30% from the same year-earlier quarter, driven in large part by weakness in the company’s power division.However, some results were more positive and seem to provide a glimmer of hope for the beleaguered industrial company.GE poste...

By William Sprouse • July 20, 2018