Companies could ditch quarterly earnings for semiannual reports under new SEC plan

[BumRushDaShow]

Source: msn/Barron's

3h


The Securities and Exchange Commission on Tuesday proposed a new rule that would let companies ditch quarterly reports in favor of filing earnings only twice a year. SEC Chairman Paul Atkins and President Donald Trump had said for months that such a move was coming, describing it as a way for companies to save money and focus on their long-term trajectory.

It might take a while before investors see a meaningful shift away from quarterly reports. First, it will still take a few months for the rulemaking process to play out. The SEC said it would officially publish the proposal in the Federal Register in the next few days, after which the public can comment on the rule for 60 days. Then the SEC will consider the comments and publish a final rule.

Assuming nothing changes, companies’ first chance to switch to semiannual reporting will come the next time they file an annual report. By checking a box in the report, companies will be able to commit to filing only semi-annually for the rest of the fiscal year. They will not be able to change reporting cadence during the fiscal year.

It’s also unclear how many companies will opt to change to the new regime, and some investor groups have already signaled they’re uneasy with the proposal.

Read more: https://www.msn.com/en-us/money/economy/companies-could-ditch-quarterly-earnings-for-semiannual-reports-under-new-sec-plan/ar-AA22snd1

[relayerbob]

1. This would help us in the long run

US investors are always worried about the next earnings report, driving companies to short term thinking, at the expanse of long term solutions. Net result, countries (read: China) with a longer horizon than three months are pulling away while billionaires circle jerk themselves over how much money they in the last three months.

Require reinvestments in companies, whether R&D or health care, or whatever, and stop stock buybacks to artificially increase stock prices while consolidating billionaire wallets, and we'll maybe start being able to complete again.

[BumRushDaShow]

2. They probably have that arrangement

because, IIRC, they are filing/paying estimated taxes quarterly (so that info is already being gathered and reported to the IRS at that frequency).

[SamuelAdams]

3. I understand your point and somewhat agree.

But how much difference does reporting every 6 months versus every 3 months make for long-term planning?

[dave99]

4. makes money laundering easier

[Prairie Gates]

5. It's actually not a bad thing in principle to ween these fuckwad CEOs off their suicidal short-term thinking

Of course, because most people in the C-Suite are just fundamentally bad people, and because capitalism is a fundamentally corrupt way to organize society, they will take what is a slight amelioration (not being tied to quarterly earnings) and turn it into some corrupt and awful lack of transparency.

There is no reform of this garbage system.

Only revolution.

[angrychair]

6. Honestly, what does it matter if they report at all?

Truly, I don't give a shit. The stock market is a house of mirrors.

It's just a bunch of billionaire tech bros in a circle jerk.

Not a single Al related tech company is profitable. Not one. And never will be. Ever.
Yet that currently represent about 40% of the entire value of the stock market and are well beyond a bailout by the US government.

None of that is my opinion. It's reality. Something missing in those worthless ass quarterly reports.