SEC 'prioritizing proposal' to allow companies to report results every six months instead of three

Regulatory Landscape & Potential Changes - SEC is considering allowing public companies to report results every six months instead of every three months [1] - The proposal aims to eliminate unnecessary regulatory burden on companies [1] Arguments for Semi-Annual Reporting - Semi-annual reporting could save firms money [1] - Managers could focus on properly running their companies with less frequent reporting [1] - It may help America better compete with China's longer-term view of business development [1] - Moving away from short-term guidance would be beneficial for companies [1] Concerns & Counterarguments - Less frequent reporting could raise questions about the opacity and democratization of information [5] - Investor conferences and meetings with IR would become more important with semi-annual reporting [5] - Some argue for more information from companies, not less [3] Short-Termism vs Long-Term Focus - Short-termism is harming the economy [1] - Companies should stop issuing earnings per share guidance on a quarterly basis [1] - Amazon is an example of a company with a long-term focus, prioritizing growth over immediate profits [1][2] Impact on Earnings Analysis - Forecasting earnings per share can be challenging due to various charges and pipeline deals [2] - Revenue misses can lead to stock sell-offs, even if deals are pushed back slightly [2] - Reporting on a six-month basis would reduce the frequency of these events from four times a year to two [2] Frequency of Earnings Reports - The discussion references covering at least 500 companies for 120 earning seasons (30 years * 4 quarters) [4]