GM Hits Record Profit But Expects Flat Growth

General Motors on Tuesday reported a sharp decline in fourth-quarter profit and predicted flat profit growth for 2017.Net income for the last quarter dropped 70.7% to $1.8 billion, reflecting in part special items and a $500 million negative foreign currency impact. Profit in the year-ago quarter...

By Matthew Heller • Feb. 7, 2017

Institutional Ownership Spurs Tax Avoidance: Study

If corporate tax reform is high on the national economic agenda, the time is none too soon, a new study suggests.While criticism of the current tax law most commonly targets its high statutory rate, the new research underscores another important issue: the significant disadvantage the IRS code im...

By David McCann • Feb. 7, 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

Tyson Shares Dip on News of SEC Subpoena

Tyson Foods shares dropped more than 3% after the nation’s largest poultry processor disclosed that the U.S. Securities and Exchange Commission had opened an investigation into its chicken-pricing practices.In a regulatory filing, Tyson said Monday it had received a subpoena from the SEC on Jan. ...

By Matthew Heller • Feb. 7, 2017

Hershey Hit by 16.6% Sales Decline in China

Hershey’s fourth-quarter revenue missed Wall Street estimates as its business in China continued to struggle, but the bottom line got a boost from low cocoa prices and cost cuts.The chocolatier reported that net sales rose 3.2% to $1.97 billion but analysts on average had expected $1.99 billion. ...

By Matthew Heller • Feb. 6, 2017

Amazon Shares Dip 3% on Revenue Miss

Amazon shares dropped more than 3% on Friday as a 55% increase in fourth-quarter profit couldn’t offset lower-than-expected revenue growth.The online shopping giant posted net income was $749 million, or $1.54 a share, up from $482 million, or $1 a share, during the same period a year earlier. An...

By Matthew Heller • Feb. 3, 2017

Accounting Change Boosts Facebook’s Earnings

Facebook’s earnings more than doubled in the fourth quarter, reflecting the tax benefit from a change in the way companies account for stock payments to employees.The social-media giant reported that net income rose to $3.57 billion, up from $1.56 billion a year ago, while full-year 2016 earnings...

By Matthew Heller • Feb. 2, 2017

Shell’s Cash Flow Boosts Hopes for Strong 2017

Royal Dutch Shell posted its worst annual profit for more than a decade but better-than-expected cash flows cheered investors looking for an improved performance this year.Shell’s fourth-quarter earnings fell to $1.0 billion from $1.8 billion a year ago, while the company earned $3.5 billion for ...

By Matthew Heller • Feb. 2, 2017

Artificial Intelligence Comes to Financial Statement Audits

Can we trust Artificial Intelligence (AI) to audit financial statements?Perhaps.Artificial intelligence advocates speak of a time to come when these systems will be capable of auditing 100% of a company’s financial transactions. These visionaries foresee the day when AI will enable auditing that ...

By Bill Brennan, Mike Flynn, and Mike Baccala • Feb. 2, 2017

Acting SEC Chair Calls Disclosure Rule ‘Misguided’

The Republican now leading the U.S. Securities and Exchange Commission has called the conflict mineral disclosure rule “misguided” and directed staff to reconsider how companies should comply with it.The rule, mandated by the Dodd-Frank financial reforms, was intended to help determine whether th...

By Matthew Heller • Feb. 2, 2017

$2B Asset Writedown Hits Exxon’s Q4 Earnings

Exxon Mobil missed fourth-quarter earnings estimates, reflecting a $2 billion asset impairment charge to account for a decline in the value of U.S. gas assets.The company reported net income of $1.68 billion, or $0.41 per share, down from $2.8 billion, or $0.67 per share a year earlier. The FactS...

By Matthew Heller • Feb. 1, 2017

Apple Posts Record Quarterly Revenue of $78B

Apple rebounded from three straight quarters of declining revenue, reporting all-time record quarterly revenue for the first quarter amid strong sales of the new iPhone 7.The company posted revenue of $78.4 billion and all-time record quarterly earnings of $3.36 per share, up from revenue of $75....

By Matthew Heller • Feb. 1, 2017

How to Reduce Investment Decision Complexity

Far too many companies have bureaucratic investment procedures that evolve over time into a complex, cumbersome, conflicting, and confusing approval process. Whether it’s for the approval of a capital expenditure, acquisition, research and development program, or marketing investment, there are o...

By Gregory V. Milano • Feb. 1, 2017

Balance-Sheet Cash Likely to Rise, Not Fall, in 2017

Are corporations going to deploy a chunk of their cash reserves this year? The Association for Financial Professionals’ Corporate Cash Indicators index seems to indicate they will.The quarterly survey of corporate treasury and finance professionals released Monday found that 30% of U.S. company r...

By Vincent Ryan • Jan. 30, 2017

Time to Prepare for Upcoming Accounting Rule Changes

Deadlines to comply with the new lease accounting and revenue recognition standards are coming up fast, and it is time to step up the compliance efforts. These two issues are expected to have a significant impact on financial reporting systems and practices. Here are five articles to help you pri...

By CFO Editorial Staff • Jan. 28, 2017

Caterpillar Beats Q4 Estimates, Lowers Outlook

Caterpillar reported better-than-expected earnings for the fourth quarter but its guidance for 2017 fell below analysts’ expectations.The construction and mining equipment manufacturer earned an adjusted 83 cents a share, matching results in the year-earlier period, while revenue fell to $9.57 bi...

By Matthew Heller • Jan. 27, 2017

Google’s Non-Advertising Revenue Rises 62%

Google-parent Alphabet posted lower-than-expected earnings for the fourth quarter but its push to develop non-advertising revenue sources may be gaining some traction.The company earned $9.36 per share, adjusted and excluding items, on revenues of $26.06 billion. Analysts had expected earnings of...

By Matthew Heller • Jan. 27, 2017

Leading U.S. Indicators Point to Continued Growth

The Conference Board’s economic index of future business conditions increased 0.5% in December, to 124.6, based on improving sentiment about the U.S. economy, according to the Conference Board.“The U.S. Leading Economic Index increased in December, suggesting the economy will continue growing at ...

By Vincent Ryan • Jan. 26, 2017

Ford Swings to $783M Loss on Special Charges

Ford Motor swung to a net loss of $783 million in the fourth quarter as special charges offset strong underlying results in markets including Europe.The charges were related to Ford’s change in its pension accounting, the cancellation of a plant in Mexico, and a safety recall. Excluding those ite...

By Matthew Heller • Jan. 26, 2017

Cost-Cutting Pays off for Boeing in 4th Quarter

Boeing stock rose more than 4% on Wednesday after the aerospace posted better-than-expected quarterly earnings and forecast profit growth next year despite weak demand.With orders for new jetliners slowing sharply after peaking in 2014. Boeing and rival Airbus have focused on streamlining factori...

By Matthew Heller • Jan. 25, 2017

IPO ‘On-Ramp’ a Qualified Success

The Jumpstart Our Business Startups Act’s most successful section is Title I, the so-called “IPO On-Ramp” legislation. Designed to re-open the capital markets for emerging growth companies, the provisions in Title I allow issuers to meet reporting obligations gradually and submit an S-1 filing co...

By Vincent Ryan • Jan. 25, 2017

Verizon Shares Fall 4% on Earnings Miss

Verizon Communications’ fourth-quarter profit and subscriber growth missed analysts’ expectations amid increasing competition from wireless rivals such as T-Mobile and Sprint.The largest U.S. wireless provider on Tuesday reported adjusted earnings of 86 cents per share, down from the 89 cents per...

By Matthew Heller • Jan. 24, 2017

J&J Sales Increase 1.7% But Miss Estimates

Johnson & Johnson on Tuesday reported a smaller-than-expected rise in fourth-quarter sales and forecast 2017 sales and profit below Wall Street estimates.For the final quarter of 2016, J&J’s earnings jumped 19% to $3.81 billion with adjusted earnings of $1.58 per share, topping average an...

By Matthew Heller • Jan. 24, 2017

GE Posts 36% Profit Jump, 2.4% Revenue Drop

General Electric reported a 36% profit increase for the final quarter of 2016 and affirmed its 2017 target of 3% to 5% revenue growth.Net income from continuing operations attributable to shareholders rose to $3.48 billion in the fourth quarter, or 39 cents a share, from $2.57 billion, or 26 cent...

By Matthew Heller • Jan. 23, 2017

How CFOs Can Budget to Boost Cybersecurity

As CFOs settle into the new year, routine concerns about cybersecurity readiness are being compounded by non-traditional, “nimble” technology-enabled competition, rapid globalization, and significant political changes in major markets, including ones stemming from the U.S. presidential election a...

By Christopher O'Hara • Jan. 19, 2017

GE Transfers Bulk of Tax Team to PwC

Reacting to what it sees as increasing uncertainty about tax rules in the United States and the rest of the world, PwC will hire more than 600 lawyers and public accountants from General Electric’s tax team and incorporate GE’s tax technologies and processes. In exchange, GE will get to shed sala...

By David Katz • Jan. 18, 2017