Goldman Sachs (GS) Expected to See Drastic Drop in Q3 Results
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Price: $417.10 -1.4%
EPS Growth %: +31.7%
Financial Fact:
Market development: 92M
Today's EPS Names:
FRSB, DGICA, UXIN, More
EPS Growth %: +31.7%
Financial Fact:
Market development: 92M
Today's EPS Names:
FRSB, DGICA, UXIN, More
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Goldman Sachs (NYSE: GS) shares are trading slightly lower Tuesday as, according to reports late Monday, the bank is expected to report its lowest quarterly profit since the financial crisis of 2008. Expectations for quarterly declines in the investment banking business only add to concerns.
Reversing from 2009 and 2010, when Goldman hit record profits as markets continued rising and trading was key, 2011 will benefit institutions which focus more on retail operations. Wells Fargo (NYSE: WFC) is expected to report record quarterly earnings.
This quarter will include Standard & Poor's decision to downgrade U.S. credit rating, spooking many investors and traders. The U.S. Fed has kept rates at or near zero, and plans to continue doing so for the foreseeable future to spur more economic growth.
For Goldman, the decline is real. Bloomberg reported the firm made about 70 percent of it's revs in the first half of 2011 by investing its own money. Goldman's third quarter will show a massive decline in earnings from $2.98 per share last year to at or near break even this year.
Though it's not exactly a loss, Goldman posting breakeven earnings would be a lost quarter for the Wall Street icon. Goldman reported it's only loss since going public in the fourth quarter of 2008. Goldman began trading publicly in 1999.
On the flip side, Wells Fargo is expected to earn 72 cents per share in the quarter, leading to annual earnings of $2.82 per share in 2011.
J.P. Morgan (NYSE JPM) will be kicking off earnings for the financial sector on October 13th.
Reversing from 2009 and 2010, when Goldman hit record profits as markets continued rising and trading was key, 2011 will benefit institutions which focus more on retail operations. Wells Fargo (NYSE: WFC) is expected to report record quarterly earnings.
This quarter will include Standard & Poor's decision to downgrade U.S. credit rating, spooking many investors and traders. The U.S. Fed has kept rates at or near zero, and plans to continue doing so for the foreseeable future to spur more economic growth.
For Goldman, the decline is real. Bloomberg reported the firm made about 70 percent of it's revs in the first half of 2011 by investing its own money. Goldman's third quarter will show a massive decline in earnings from $2.98 per share last year to at or near break even this year.
Though it's not exactly a loss, Goldman posting breakeven earnings would be a lost quarter for the Wall Street icon. Goldman reported it's only loss since going public in the fourth quarter of 2008. Goldman began trading publicly in 1999.
On the flip side, Wells Fargo is expected to earn 72 cents per share in the quarter, leading to annual earnings of $2.82 per share in 2011.
J.P. Morgan (NYSE JPM) will be kicking off earnings for the financial sector on October 13th.
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