Looks like the United States is not going to force quarterly earnings disclosures (I'm sure some companies still will).
This is a good idea *if* we do one qualification: staggered earnings season.
Half of publicly listed stocks report Q1/Q3. Other half report Q2/Q4. Dividing up earnings reports will give investors more time to digest earnings season as opposed to the current model of getting overworked for three week every quarter
Thoughts?
Ditching Quarterly Earnings (One Qualifier)
byu/AromaticMemory5073 ininvesting
Posted by AromaticMemory5073
3 Comments
It’s not a good idea because it will make the swings on 6 month earnings reports more dramatic. It’s not like the actual results will change, but we get them less frequently, so there will be larger reactions.
From a market stability perspective, ideal reporting would be daily, but obviously that is too much effort to do accurately without derailing the whole business
Of course, all of this is a red herring. Trump wants this because the indicators are bad and it buys him more time to make stuff up.
I’ll also say this: reporting results is part of the job. If you don’t like it, quit. I’ve never seen a generation talk so much about hard work while refusing to do any compared to Boomers.
Yeah, that’s an interesting take. The current flood of reports every quarter really does feel like drinking from a firehose. Staggering could definitely spread out the workload and maybe even lead to better analysis instead of hot takes.
Downside is it might make direct comparisons between peers a little trickier if they’re not reporting in the same cycle.. but that might be a tradeoff worth making.
I watched a Fortune 50 company twist itself into knots in order to show an increase in profits every 3 months. That’s no way to think long term.