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Analysis-Most US companies seen sticking with quarterly reporting

Reuters analysis: The SEC is expected to seek public comment on a Trump-administration revival of a proposal to make quarterly earnings reporting optional, shifting firms toward semiannual results. Market participants — including asset managers, hedge funds and exchanges — warn most companies will likely keep quarterly reports because reduced disclosure could hurt valuations, raise volatility and increase cost of capital for adopters. Smaller firms and biotech companies might be more willing to opt for less frequent reporting to cut costs and focus on long-term projects, while big firms such as JPMorgan say they would continue providing quarterly guidance. The proposal revives debate over whether lighter reporting could stem the decline in U.S. listed companies (from ~8,800 in the late 1990s to ~4,200 today) but investors largely favour maintaining current cadence to preserve accurate valuations and liquidity.

Category

US 500

Sentiment

Neutral

Event

Regulatory action

Reading time

1 min