Trump wants to eliminate quarterly earnings reports

By Ovunc Kutlu

NEW YORK (AA) – U.S. President Donald Trump said Friday that he suggested the Security and Exchange Commission end quarterly earnings reports for publicly traded companies to improve business environment.

Trump said via Twitter he spoke top business leaders and asked what could be done to improve employment and the business climate in the country.

"'Stop quarterly reporting & go to a six month system,' said one. That would allow greater flexibility & save money. I have asked the SEC to study!," he wrote on Twitter.

He later told reports he would like to see the results "twice" a year.

Quarterly earnings reports are released every three months and provide detailed information about a company’s financial positions from sales to revenues.

Ending the reports is not a new topic of discussion. Many executives argue their firms try to meet estimates of Wall Street analysts, which often puts pressure on companies and their long-term goals.

Moreover, if results miss expectations, a company's stock could suffer.

Tesla CEO Elon Musk said in a statement last week quarterly results put pressure on the firm.

"Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term," he said.