I currently run a strategy that is very attached to the quarterly earnings system, and now I see all this nonsense about changing the earnings frequency. Will it happen? Why or why not?
Quarterly to semi-annual earnings
- Thread starter lightfightercap
- Start date
I think it might happen and it might happen soon enough. A change like that could allow companies to think long-term instead of racing to show quarterly profits. It would also increase volatility around earnings and possibly put more pressure on obtaining information via other avenues.
As for your earnings vol strategy - you should view ANY strategy with an expectation that sooner or later it would stop working. If anything, a change that breaks the existing models for the market makers might give you a little bit of opportunity.
Quarterly earning reporting is fine. A company that has problem reporting on a quarterly basis will not make it easier reporting on semi annual or annual basis. It's all in the ERP system and just a few key strokes, the financial report of an entire corporation is generated. It all boil down to the top and bottom lines. Then again, financial report is so much different than investors' expectation.
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And it would be a bit easier to hide bad number on 6 months. Prefer quarters myself.Annual sounds bad, but maybe get more of a roller coaster, on that LOL
