President Donald Trump reiterated his call for companies to ditch quarterly reporting in a post on Truth Social early Monday.
President Donald Trump wants companies to ditch quarterly reporting and instead post results every six months - a move that could be dramatic for U.S. investors but that has international precedent.
Trump brought up the issue during his first term in office, and he was back with a refreshed call in a post on his Truth Social network early Monday. "This will save money, and allow managers to focus on properly running their companies," he wrote.
European companies report at twice yearly, although they sometimes give more frequent updates.
Trump said this time around that the matter is "Subject to SEC Approval." It remains to be seen how serious the president is about pushing for this change.
TD Cowen analyst Jaret Seiberg said that action by the Securities and Exchange Commission is probable, though not guaranteed. Taking up the matter would be "an easy win for SEC Chair Paul Atkins to deliver to the president," Seiberg said in a note on Monday. "And it is consistent with his deregulatory views."
He doesn't expect a proposal until 2026 at the earliest, however.
The quarterly earnings cycle has been criticized by high-profile figures such as Elon Musk, who has previously described the "enormous pressure" placed on Tesla Inc. $(TSLA)$ to make decisions based on short-term needs rather than long-term objectives.
Former PepsiCo Inc. $(PEP)$ Chief Executive Indra Nooyi was also a critic of the quarterly reporting system.