ASC 606: What’s the Impact So Far?

With the new revenue recognition rule now in effect and earnings season in full swing, we are beginning to see how different companies have changed the way they account for revenue.For some, it will improve fiscal 2018 financial results. However, if a company shows revenue improvements, it could ...

By Derryck Coleman and Olga Usvyatsky • March 5, 2018

So Far, Only 6% of Tax Savings Going to Workers

Once 2018 began, it became the single biggest question the wider public wanted to know: How did large U.S. corporations plan to spend the windfall bestowed on them by the Tax Cuts and Jobs Act?Two months and about 90 company announcements in, the discussion hasn’t died down. Indeed, firms like JU...

By Vincent Ryan • March 2, 2018

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

J.C. Penney Shares Dive on Q4 Sales Miss

J.C. Penney shares fell more than 5% on Friday as it reported lower-than-expected quarterly same-store sales growth amid weak demand for apparel and fierce online competition.A downbeat full-year profit forecast added to investors’ concerns even though adjusted fourth-quarter earnings of 57 cents...

By Matthew Heller • March 2, 2018

Lowe’s Falling Margins Drive 5% Stock Slide

Lowe’s Companies on Wednesday reported better-than-expected quarterly sales but profits disappointed Wall Street as heavy promotional spending squeezed margins.The home improvement retailer’s shares tumbled 5% after it also forecast operating margin this year would decline by about 30 basis point...

By Matthew Heller • Feb. 28, 2018

Auditor Rotation Rules Miss Their Mark

Last year, in a pointed footnote to the scandal enveloping Wells Fargo, two major pension funds opposed ratification of the company’s external auditor and called on Wells Fargo to explore changing audit firms.Yet, the bank’s 85-year relationship with the auditor continues today despite the object...

By David McCann • Feb. 28, 2018

Fitbit Stock Drops 13% on Q4 Earnings Miss

Fitbit shares fell 13% in after-hours trading on Monday after the wearable device maker reported lower-than-expected earnings as the market for its fitness trackers continued to shrink.Fitbit launched a new smartwatch, the Ionic, last year in a bid to diversify its product line and offer an alter...

By Matthew Heller • Feb. 27, 2018

Macy’s Ends Same-Store Sales Losing Streak

Macy’s on Tuesday reported quarterly same-store sales growth for the first time since the end of 2014, fueling optimism that the retailer’s turnaround efforts are paying off.Like other retailers, Macy’s benefited from a strong holiday season as comparable sales rose 1.3% in the fourth quarter tha...

By Matthew Heller • Feb. 27, 2018

Supreme Court Whistleblower Ruling: Analysis

Wednesday’s Supreme Court ruling limiting the scope of the Dodd-Frank Act’s whistleblower protections immediately disrupts the status quo created by SEC’s broader interpretation.Marc Rosen Under the ruling, whistleblowers are now required to report violations of law to the Securities and Exchange...

By Robert Tuchman and Marc Rosen • Feb. 23, 2018

Barclays Shares Jump 4.4% on Dividend Hike

Barclays swung to a net loss of more than $2.6 billion in 2017 but its shares jumped more than 4% on Thursday after the British bank said it will pay out its full dividend this year.Barclays’ bottom line was hit in part by a 901 million pound ($1.26 billion) writedown in the fourth quarter relate...

By Matthew Heller • Feb. 22, 2018

Risky Business

Companies face risks of many shapes and sizes but sometimes struggle to prioritize them. Yet it’s a flat-out certainty that, today, the greatest perceived threat to business health and success is the scourge of bad actors aiming to gain access to corporate information systems.A recent CFO Researc...

By Josh Hyatt • Feb. 21, 2018

Dish Adds Sling TV Subs But Sales Drop 7%

Dish Network on Wednesday reported a 7% decline in quarterly revenue, showing growth in its Sling TV online streaming service but continuing losses of subscribers to its legacy satellite TV service.Dish launched Sling TV at $20 per month in January 2015 to target younger consumers avoiding pricey...

By Matthew Heller • Feb. 21, 2018

Should You IPO?

The number of U.S. tech IPOs over the past few years has been disappointingly low, and that trend could continue. Investors hoping to catch an early ride on the next Facebook or Google initial public offering may be waiting a long time. On the issuer side, fewer startup employees and C-suite exec...

By Keith Button • Feb. 20, 2018

Non-Fizzy Drinks Boost Coca-Cola Q4 Sales

Coca-Cola’s efforts to broaden its brand portfolio paid off in the latest quarter as it beat analysts’ estimates despite flat sales of its core carbonated soft drinks.The company has been focusing on non-fizzy beverages such as Georgia coffee and Glaceau vitamin water as consumers shift away from...

By Matthew Heller • Feb. 20, 2018

Walmart Online Sales Growth Slows to 23%

Walmart shares tumbled more than 9% on Tuesday after the retail giant reported that online sales growth slowed amid “operational challenges” at its fulfillment centers during the holidays.For the fourth quarter, Walmart’s total revenue increased 4.1% to $136.3 billion, beating analysts’ estimates...

By Matthew Heller • Feb. 20, 2018

Tax Cuts Trigger CFO Optimism

Happy days are here again? For U.S. finance chiefs, it seems, they are. At least that’s the prevailing mood since Congress passed the Tax Cuts and Jobs Act, the biggest overhaul to the tax system since 1986.Business optimism among finance chiefs in the U.S. and some other countries reached record...

By CFO Editorial Staff • Feb. 20, 2018

High-Stakes Games

This year’s Olympics in South Korea are likely to cost far less than the $21.9 billion spent on the 2014 winter games in Sochi, Russia, experts predict. Yet hosting these events can bust a city’s or country’s budget. Since 1960, 47% of the games have had cost overruns above 100%. How much do you ...

By CFO Editorial Staff • Feb. 20, 2018

Kraft Heinz U.S. Sales Drop Hits Q4 Earnings

Kraft Heinz shares fell more than 3% on Friday as its latest quarterly earnings came in below analysts’ expectations, reflecting another decline in sales in the U.S.After cutting $1.7 billion in costs by the end of 2017, the world’s fifth-largest food and beverage company is planning to ramp up s...

By Matthew Heller • Feb. 19, 2018

Cisco Shares Jump on Return to Sales Growth

Cisco returned to revenue growth after a two-year hiatus, signalling it may have turned a corner in its difficult transition from a hardware to a software-focused business model.The networking giant’s shares jumped 6.7% to $44.93 in after-hours trading Wednesday — levels not seen since the dot.co...

By Matthew Heller • Feb. 15, 2018

Impacts of New Tax Law Still Fuzzy

A pair of surveys conducted in early February portray companies as being in a bit of disarray regarding impacts from the Tax Cuts and Jobs Act.In one of the surveys by recruiting and workforce management firm Korn Ferry, three quarters (74%) of 262 surveyed executives said they believe that the n...

By David McCann • Feb. 15, 2018

Shopify Beats Estimates With 71% Sales Jump

Canada’s Shopify e-commerce platform reported better-than-expected quarterly earnings on Thursday but its revenue grew at the slowest pace since it went public in 2015.Total revenue in the fourth quarter was $222.8 million, a 71% increase from the year-ago period. But revenue grew more than 90% i...

By Matthew Heller • Feb. 15, 2018

Record Insurance Losses Trigger Premium Spike

Organizations with property exposed to catastrophic damage are paying a steep price for the many natural catastrophes that occurred during 2017.Insurance premiums for such properties that incurred losses are up 20% to 25% this year, according to a report released on Wednesday by Willis Towers Wat...

By David McCann • Feb. 14, 2018

Tax Reform Could Be Tipping Point for AI

Companies seem to be thinking about tax reform almost in relation to almost everything — except artificial intelligence. But hear me out.There are some good reasons why the recently adopted U.S. tax reform legislation may be a tipping point for AI adoption. One of the biggest has to do with money...

By Michael Shehab • Feb. 14, 2018

Under Armour Rebounds With 5% Sales Jump

Under Armour on Tuesday reported another sales decline in its key North America market but overall revenue beat analysts’ estimates on strong international demand, sending the sneaker company’s shares up more than 15%.Under Armour’s fourth-quarter results appeared to cheer investors after a third...

By Matthew Heller • Feb. 13, 2018

Auditor Independence Rule Isn’t Tough Enough

Familiarity may breed contempt, but not in corporate accounting, according to new research.In accounting, the term “familiarity threat” refers to the threat to auditor independence that arises when a CFO or other top executive of a company being audited was formerly employed by the accounting fir...

By David McCann • Feb. 12, 2018

Twitter Moves Into the Black With $91M Profit

Twitter has reached a major milestone, posting its first ever quarterly profit, though its monthly active user numbers remained stagnant.The company reported on Thursday that it made a profit of $91 million in the final three months of 2017, compared with a loss of $167 million a year earlier. It...

By Matthew Heller • Feb. 9, 2018