Goldman (GS) Investors About to Get Rude Awakening, But They're Not Alone
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Price: $1,001.95 --0%
Rating Summary:
16 Buy, 23 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Rating Summary:
16 Buy, 23 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
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Financial stocks have been hit by a myriad of bad news lately, taking many to 52-week lows -- or beyond.
One marquee Wall Street name, Goldman Sachs (NYSE: GS), can't even escape the turmoil. At Thursday's close of $93.98, Goldman shares are marking lows not seen since mid-March 2009, about 30 months ago.
According to the Wall Street Journal Friday morning, a surprise quarterly report might come from the financial giant -- the bad kind of surprise. Due to recent poor performance, and investor uncertainty against a cloudy backdrop, Goldman may be poised to post its first quarterly loss since the bailouts of 2008 and 2009.
Goldman is currently expected to report earnings of $1.57 per share for the quarter, according to Street consensus estimates. One Barclays analyst sees that number closer to a 35 cents per share loss.
Goldman is certainly not alone; Morgan Stanley (NYSE: MS), Bank of America (NYSE: BAC), and J.P. Morgan (NYSE: JPM) have all had their fair share of trouble over the last several weeks.
The WSJ, using data from FactSet, says expectations for six large U.S. financial institutions have fallen about 7 percent since June. The group includes BofA, Goldman, J. P. Morgan, Citigroup (NYSE: C), and Wells Fargo (NYSE: WFC). This is the largest expectation drop since the fourth quarter of 2008.
Many have resorted to cutting positions in order to reduce costs. J.P. Morgan's CEO Jamie Dimon has even spoken out about Basel III rules making U.S. banks non-competitive.
But cutting-costs the old fashioned way is a double-edged sword: short-term profits are bolstered, while longer-term revenue goals may be missed. While Goldman may see a loss in the quarter, investors hope the bank can retain enough human capital to drive future results.
Goldman shares are bouncing very modestly Friday morning, currently up 1 percent to around $94.93.
One marquee Wall Street name, Goldman Sachs (NYSE: GS), can't even escape the turmoil. At Thursday's close of $93.98, Goldman shares are marking lows not seen since mid-March 2009, about 30 months ago.
According to the Wall Street Journal Friday morning, a surprise quarterly report might come from the financial giant -- the bad kind of surprise. Due to recent poor performance, and investor uncertainty against a cloudy backdrop, Goldman may be poised to post its first quarterly loss since the bailouts of 2008 and 2009.
Goldman is currently expected to report earnings of $1.57 per share for the quarter, according to Street consensus estimates. One Barclays analyst sees that number closer to a 35 cents per share loss.
Goldman is certainly not alone; Morgan Stanley (NYSE: MS), Bank of America (NYSE: BAC), and J.P. Morgan (NYSE: JPM) have all had their fair share of trouble over the last several weeks.
The WSJ, using data from FactSet, says expectations for six large U.S. financial institutions have fallen about 7 percent since June. The group includes BofA, Goldman, J. P. Morgan, Citigroup (NYSE: C), and Wells Fargo (NYSE: WFC). This is the largest expectation drop since the fourth quarter of 2008.
Many have resorted to cutting positions in order to reduce costs. J.P. Morgan's CEO Jamie Dimon has even spoken out about Basel III rules making U.S. banks non-competitive.
But cutting-costs the old fashioned way is a double-edged sword: short-term profits are bolstered, while longer-term revenue goals may be missed. While Goldman may see a loss in the quarter, investors hope the bank can retain enough human capital to drive future results.
Goldman shares are bouncing very modestly Friday morning, currently up 1 percent to around $94.93.
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