Chamber Urges SEC to Nix Auditor Disclosure Rule

In a strongly worded letter, the U.S. Chamber of Commerce urged the Securities and Exchange Commission to turn thumbs down on a proposal that would require auditors to disclose their biggest concerns in their audits of public companies.If the SEC approves the Public Company Accounting Oversight B...

By David Katz • Aug. 16, 2017

Why Banks Are Paying So Little Interest

From December 2015 through June 2017, the Federal Reserve raised the short-term benchmark interest rate four times, each time in an increment of 25 basis points. But according to national average deposit rates published by the Federal Deposit Insurance Corp., the interest rates banks are paying d...

By Vincent Ryan • Aug. 16, 2017

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

UK Watchdog Fines PwC $6.6M Over Audit

Britain’s accounting watchdog has hit PwC with a record 5.1 million pound ($6.6 million) fine and a severe reprimand for “extensive misconduct” in its audit of a troubled professional services firm.The Financial Reporting Council announced the sanctions on Wednesday after an investigation of the ...

By Matthew Heller • Aug. 16, 2017

Dick’s Sporting Goods Stock Dives on Q2 Results

Despite the demise of some of its leading competitors, Dick’s Sporting Goods on Tuesday reported disappointing quarterly earnings and lowered its full-year outlook, sending its shares down more than 21%.Dick’s was expected to pick up market share from Sport Chalet and Sports Authority, which both...

By Matthew Heller • Aug. 15, 2017

KPMG Settles Charges of Improper Energy Audit

KPMG has agreed to pay more than $6.2 million to settle Securities and Exchange Commission charges that the accounting firm failed to properly audit the financials of an oil and gas company that reported that assets valued at less than $5 million were worth nearly $500 million.“Auditing firms mus...

By David Katz • Aug. 15, 2017

A Vote of Confidence for the PCAOB?

In an apparent vote of confidence for the Public Company Accounting Oversight Board and its embattled chairman, James R. Doty, Securities and Exchange Commission Chairman Jay Clayton announced that Doty has agreed to stay on as the SEC begins to fill four out of the PCAOB’s five board seats.James...

By David Katz • Aug. 14, 2017

Q2 Earnings Send JC Penney Stock to New Low

J.C. Penney shares hit an all-time low on Friday as worse-than-expected quarterly earnings and same-store sales fueled investor concern over its turnaround program.In the second quarter, the retailer saw its net loss widen to $62 million, or 20 cents per share, from $56 million, or 18 cents per s...

By Matthew Heller • Aug. 11, 2017

Macy’s Same-Store Sales Decline Slows in Q2

The decline in Macy’s same-store sales slowed in the latest quarter but investors apparently remain doubtful that the struggling retailer’s turnaround efforts will succeed.For the second quarter, comparable sales fell 2.8%. It was the 10th straight quarter of decline for Macy’s, though the drop w...

By Matthew Heller • Aug. 11, 2017

TripAdvisor Earnings Beat But Growth Flat

TripAdvisor reported quarterly results that beat expectations for profit but a shift to lower-value mobile traffic and increased competition dampened earnings growth.The company’s adjusted earnings per share for the second quarter were unchanged from a year ago at $0.38, with share buybacks durin...

By Matthew Heller • Aug. 10, 2017

Blue Apron Beats Estimates But Stock Plunges

In its first earnings release as a public company, meal-kit delivery service Blue Apron on Thursday reported better-than-expected revenue and adjusted EBITDA but its stock took another blow.For the second quarter, Blue Apron’s net sales increased 18% year-over-year to $238.1 million, driven by an...

By Matthew Heller • Aug. 10, 2017

DineEquity Shares Rise 4% on Earnings Beat

The parent of Applebee’s and IHOP reported Thursday that same-store sales declined at both restaurant chains but its shares rose as profit topped analysts’ estimates.DineEquity said domestic comparable store sales fell 6.2% at Applebee’s and 2.6% at IHOP in the second quarter compared with the ye...

By Matthew Heller • Aug. 10, 2017

Lower Inventory Boosts Ralph Lauren Profit

Ralph Lauren earnings beat analysts’ estimates as the apparel chain’s bottom-line benefited from reduced discounting and inventory.For the first quarter, Ralph Lauren earned $59.5 million, or 72 cents per share, compared with a loss of $22.3 million, or 27 cents per share, a year earlier.The year...

By Matthew Heller • Aug. 9, 2017

Big Q2 Loss Sends Fossil Shares Down 24%

Shares in Fossil Group fell sharply on Wednesday after the watchmaker reported it swung to a quarterly loss and announced the resignation of CFO Dennis Secor.Fossil has moved into smartwatches amid the decline of its traditional watch business but its second-quarter results did little to convince...

By Matthew Heller • Aug. 9, 2017

Disney Shares Tumble on Weak Q3 Results

Walt Disney Co.’s announcement of a major shift to streaming content wasn’t enough to avert the worst day for its stock in 15 months amid weak third-quarter results.The company’s adjusted earnings beat analysts’ estimates but operating income declined 10% year over year to $4.01 billion, reflecti...

By Matthew Heller • Aug. 9, 2017

When Projects Have a Zero or Negative NPV

The net present value (NPV) rule is essentially the golden rule of corporate finance that every business school student is exposed to in most every introductory finance class. The NPV rule dictates that investments should be accepted when the present value of all the projected positive and negati...

By Gregory V. Milano • Aug. 8, 2017

Insurance Losses Hurt Berkshire Hathaway

A second straight quarter of insurance-underwriting losses dragged down Berkshire Hathaway’s operating profit, offsetting gains at its Burlington Northern railroad and aerospace supplier Precision Castparts.Warren Buffett’s conglomerate had operating earnings of $4.12 billion, or $2,505 per Class...

By Matthew Heller • Aug. 8, 2017

SEC Probes Deeper If Cos. Have Political Ties: Study

Contrary to previous research supporting the belief that public companies with political ties get less scrutiny from the Securities and Exchange Commission, well-connected outfits are probed more deeply, a new study finds.The political connections companies have “positively predict” reviews of co...

By David Katz • Aug. 7, 2017

OnDeck Capital Narrows Q2 Loss to $1.49M

Shares of OnDeck Capital rose sharply on Monday after the online lender reported a smaller-than-expected quarterly loss and predicted a return to profitability by the end of the year as a result of cost-cutting and improved loan quality.From a net loss of more than $17.9 million, or 25 cents per ...

By Matthew Heller • Aug. 7, 2017

Teva Stock Drops 24% on Q2 Earnings Miss

Shares in Teva Pharmaceuticals plunged to their lowest price in nearly 13 years after the generic drugmaker reported disappointing earnings, citing a saturated U.S. market for generics.Teva on Thursday posted second-quarter revenue of $5.69 billion, up 13% year over year, but below the $5.85 bill...

By Matthew Heller • Aug. 4, 2017

Microsoft Scales Accounting Mountain

In a move only a company as massive as Microsoft would consider making, the company is planning to offer a set of restated financial statements on Oct. 1 that reflect its early adoption of both of the Financial Accounting Standards Board’s two major new standards, the rules covering revenue recog...

By David Katz • Aug. 4, 2017

Burger King Delivers 3.9% Comp Sales Gain

Restaurant Brands International reported a slight drop in profit but the company’s Burger King chain delivered another strong quarter, with same-store sales beating Wall Street estimates.Net income fell to $89.5 million in the second quarter from $90.9 million a year earlier on revenues of $1.13 ...

By Matthew Heller • Aug. 3, 2017

Time Warner Soars on ‘Wonder Woman’ in Q2

Time Warner on Wednesday reported better-than-expected quarterly earnings, getting a boost from the box-office success of “Wonder Woman” and cable subscriber growth.The media conglomerate, which is awaiting government approval for its $85 billion sale to AT&T, posted net income of $1.06 billi...

By Matthew Heller • Aug. 2, 2017

Generic Competition Hits Pfizer’s Q2 Sales

Pfizer posted better-than-expected quarterly earnings but revenue missed analysts’ estimates, reflecting in part the loss of market exclusivity for some drugs.For the second quarter, the drugmaker posted net income of $3.07 billion, or 51 cents per share, compared to $2.05 billion, or 33 cents pe...

By Matthew Heller • Aug. 2, 2017

AMC Shares Plunge on Warning of Big Loss

AMC Entertainment shares tumbled to record lows on Wednesday after the world’s largest movie theater owner said it expects to report a much larger-than-expected quarterly loss amid an unusually weak box office.AMC’s second-quarter earnings aren’t due until Aug. 7 but the company startled investor...

By Matthew Heller • Aug. 2, 2017

Indices to Bar New Issuers That Offer Multiple Share Classes

Just as the initial public offering market revs up again, the providers of stock market indices are taking a stand against new issuers that trample on shareholder voting rights.According to announcements in the past week, both S&P Dow Jones Indices and FTSE Russell will bar companies from som...

By Vincent Ryan • Aug. 1, 2017