Macy’s Misses Estimates But Stock Climbs 5.6%

Macy’s reported quarterly earnings that missed analysts’ estimates for the first time in five quarters but its stock rose as it suggested the retail environment was improving.The retailer earned 17 cents a share in the third quarter, down from 56 cents a year ago and well below the consensus esti...

By Matthew Heller • Nov. 11, 2016

J.C. Penney Suffers Same-Store Sales Setback

J.C. Penney on Friday reported a surprising quarterly decline in same-store sales but said its new appliance departments in 500 stores had fueled improved results in October.The retailer’s comp sales for the third quarter ended Oct. 29. fell 0.8% after a 6.4% increase in the year-ago period. Wall...

By Matthew Heller • Nov. 11, 2016

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

Israeli Firm Fined $1.7M Over Online Trading

An Israeli firm that operates online trading platforms has agreed to pay more than $1.7 million to settle charges that it failed to disclose the risks of trading binary options, costing U.S. investors about $2 million in losses.The U.S. Securities and Exchange Commission said EZTD Inc. represente...

By Matthew Heller • Nov. 11, 2016

Trump’s Corporate Tax Reforms: What CFOs Need to Know

After a dramatic upset victory in one of the most bitterly contested presidential races in recent history, Donald Trump now has some serious work to do. His corporate tax policies—which are vital to his platform of domestic growth and repatriation of U.S. income and jobs—will require significant ...

By Matthew A. Morris • Nov. 11, 2016

Burberry Restructuring Costs Hit Pretax Profit

Burberry, which has been attempting a turnaround after a year of underperformance, reported a 34% fall in first-half pre-tax profits, reflecting costs from its retrenchment.The British luxury goods company said Wednesday that pre-tax profits declined from 154.7 million pounds ($192.2 million) to ...

By Matthew Heller • Nov. 10, 2016

How Will Trump Pay for That Huge Tax Cut?

Expect something huge involving corporate taxes to come before Congress in the early stages of the Donald J. Trump presidency. While the biggest likelihood is a massive cut in federal corporate income taxes from the current maximum rate of 35% to 15% or 20%, broader tax reform is also a possibili...

By David Katz • Nov. 10, 2016

Wendy’s Third-Quarter Profit Soars to $49M

Wendy’s reported a sharp increase in profit as higher franchise fees and strong same-store sales offset the loss of revenue from stores it has sold to franchisees.For the third quarter, the fast-food chain’s net income soared to $49 million, or 18 cents a share, from $7.6 million, or 3 cents a sh...

By Matthew Heller • Nov. 9, 2016

IFF Profit Falls 4% Amid ‘Challenging Conditions’

International Flavors & Fragrances’ shares fell nearly 4% on Tuesday after the company reported disappointing third-quarter results and cut its profit projection for the year.IFF’s third-quarter profit fell 16% to $89.8 million, or $1.12 a share, and, on an adjusted basis, dropped to $1.34 a ...

By Matthew Heller • Nov. 8, 2016

Sysco’s Profits Get Boost From Brakes Deal

Sysco’s profits rose by nearly one-third in the first quarter amid a surge in international sales fueled by its recent acquisition of U.K. food-service distributor Brakes Group.Net income increased to $324 million from $244 million a year earlier while overall revenue was up 11% at $14 billion. E...

By Matthew Heller • Nov. 8, 2016

Metric of the Month: Personnel Cost Errors

When forecasting how much a company will need to spend on labor, precision is vital. If CFOs get the personnel cost forecast wrong, the ripple effect is felt throughout the organization. Nobody feels it more than business-unit managers, who must find a way to get the work done when recruitment an...

By Mary Driscoll • Nov. 8, 2016

Berkshire Hathaway Reports Mixed Earnings

Berkshire Hathaway’s operating profit from its businesses rose 6.6% in the third quarter but net income fell due to lower investment gains.Warren Buffett’s conglomerate had operating earnings of $4.85 billion, amounting to $1.97 per Class B share or $2,951 per Class A share, in the three months t...

By Matthew Heller • Nov. 8, 2016

Sotheby’s Loss Widens to $54M in 3rd Quarter

Sotheby’s posted a steep loss in its latest quarter but assured investors the deficit was seasonal and the art market may be headed for a rally.The auction house said Monday it lost $54.5 million for the third quarter, compared to an adjusted net loss of $17.9 million a year ago. It attributed th...

By Matthew Heller • Nov. 7, 2016

M&A Activity Surges Prior to Election

While M&A activity typically slows down in the run-up to a presidential election, this year’s atypical contest is having the opposite effect in its final month. According to Dealogic, U.S. companies have struck $248.9 billion of merger agreements in October, topping the previous record of $24...

By CFO Editorial Staff • Nov. 5, 2016

Multinationals Dodged Bullet on ‘Earnings Stripping’ Rules

Many kinds of U.S. multinational companies, including  S-corporations, REITS, and financial services companies apparently dodged a bullet last month when the U.S. Treasury Dept. issued its final, substantially revised rules aimed at curtailing “earnings stripping.”U.S. Treasury Secretary Jacob Le...

By David Katz • Nov. 4, 2016

Fitbit’s Profits Hit By Manufacturing Problems

Fitbit, the maker of wearable fitness-tracking devices, posted lower than expected earnings and a dismal fourth-quarter outlook on Wednesday, sending stocks plummeting in after-hours trading and suggesting the device maker could be in for a gloomy holiday season.While quarterly revenue increased ...

By Sean Allocca • Nov. 3, 2016

Companies More Reluctant to Deploy Short-Term Cash

More U.S. companies hoarded cash again in the third quarter, according to the latest Corporate Cash Indicators data from the Association for Financial Professionals, and their finance leaders expect to continue to maintain high levels of liquidity in the final quarter of 2016.The difference betwe...

By Vincent Ryan • Nov. 3, 2016

Internal Auditors Strain under Unethical Pressures

Almost a quarter of all internal auditors experience pressure to change or suppress unfavorable audit findings, but the true prevalence of such pressure might be far greater.Socrates: Father of Ethics In a new report from the Internal Audit Foundation, based on a survey of more than 14,500 audit ...

By David McCann and Sean Allocca • Nov. 2, 2016

S&P 500 Firms Beefing Up Audit Disclosures

The percentage of S&P 500 companies that disclose information on key areas of external auditor oversight has more than doubled in the past two years, according to a new survey.The 2016 Audit Committee Transparency Barometer, issued jointly by the Center for Audit Quality and Audit Analytics, ...

By Matthew Heller • Nov. 2, 2016

IASB Plans Revamp of Financial Term Definitions

The International Accounting Standards Board is aiming to make it easier for investors to understand financial reports by providing new definitions of common financial terms.The board is responsible for setting the International Financial Reporting Standards, which are applied in more than 120 co...

By Matthew Heller • Nov. 2, 2016

Shell, BP Profits Beat Estimates in 3rd Quarter

Better-than-expected results from Royal Dutch Shell and BP fueled optimism that the oil industry is adapting to the oil price downturn.Both companies said they had made progress with efforts to stabilize profits by making further cuts in spending. “Shell delivered better results this quarter, ref...

By Matthew Heller • Nov. 1, 2016

How CFOs Can Shift Operating Focus to Value Creation

CFOs are now business value architects rather than cost controllers — and their operating models are being reshaped to reflect that. To re-architect outdated operating models, CFOs are finding new ways to adapt their organizations to a new value proposition. In many cases, that can be an uphill c...

By Christian Campagna and Accenture • Nov. 1, 2016

PwC Auditor Accused of VC Fund Audit Failures

A PricewaterhouseCoopers audit partner has been charged with failing to conduct proper audits of a venture capital fund from which biotech investor Steven Burrill looted millions of dollars.The U.S. Securities and Exchange Commission said Adrian D. Beamish signed off on audit opinions for Burrill...

By Matthew Heller • Nov. 1, 2016

Navigating Changes to Employment Laws

For CFOs charged with overseeing HR, it is imperative to keep abreast of employment law and regulations. This is particularly pertinent as the new Department of Labor overtime rule are about to kick in. Here are five articles to help finance chiefs from running afoul of when the company hires, fi...

By CFO Editorial Staff • Oct. 29, 2016

Coke Beats Estimates for 7th Straight Quarter

Coca-Cola’s third-quarter earnings beat analysts’ estimates as higher prices for sodas and strong demand for water and sports drinks in North America offset continued sales weakness abroad.The company on Wednesday reported a profit of $1.05 billion, or 24 cents a share, down from $1.45 billion, o...

By Matthew Heller • Oct. 26, 2016

Reducing Uncertainty with Predictive Modeling

The business corollary of the popular quote, “The only thing that is constant is change,” by the Greek philosopher Heraclitus, is that the only thing constant in business is uncertainty.How businesses deal with that uncertainty is everything. It can limit opportunities and hamstring the business,...

By Shaheen Dil • Oct. 26, 2016