President Trump’s call for the U.S. Securities and Exchange Commission (SEC) to replace quarterly earnings with semi-annual reporting has reignited a long-running debate on corporate disclosure.
In a note to clients, TD Cowen said, “We view SEC action as probable though not guaranteed as this is an easy win for SEC Chair Paul Atkins to deliver to the President. And it is consistent with his de-regulatory views.”
The firm added that the earliest a proposal could emerge is 2026.
Trump posted on social media: “Subject to SEC Approval, Companies and Corporations should no longer be forced to ‘Report’ on a quarterly basis (Quarterly Reporting!), but rather to Report on a ‘Six (6) Month Basis.’ This will save money, and allow managers to focus on properly running their companies.”
TD Cowen noted that “companies and the market have debated for decades the value of quarterly earnings reports without the SEC imposing a change,” but in the past those in favor “never had the political backing needed for an SEC chair to make this a policy priority.”
The firm highlighted the significance of Trump aligning his push with industry efforts, citing reports that the Long-Term Stock Exchange has been meeting with the SEC and plans to formally petition for semi-annual reporting.
“President Trump’s decision to wade back into this debate after the report on the LTSE’s effort is significant,” TD Cowen said.
The analysts currently assign “a 60% probability that the SEC switches to semi-annual from quarterly reporting,” adding that their bias is toward odds rising.
Source :
https://www.investing.com/news/stock-market-news/is-the-sec-prepared-to-eliminate-quarterly-earnings-reports-td-cowen-weighs-in-4239184
