Goldman (GS) Issues Wider than Expected Q3 Loss; Analysts Comment
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Price: $1,061.23 -1.26%
Rating Summary:
16 Buy, 23 Hold, 2 Sell
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Up: 8 | Down: 12 | New: 5
Rating Summary:
16 Buy, 23 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 5
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Goldman Sachs (NYSE: GS) remains resilient in Tuesday trading, amid a larger-than-expected third-quarter loss.
Revenue in the quarter was halved at $3.587 billion, leading to a loss of 84 cents per share. The Street expected revenue of $4.59 billion and a loss of 15 cents per share.
Following the loss, Wells Fargo commented that, "Trading results were in line with our projections, but poor investing and lending performance accounted for the delta versus our estimate. We believe the volatile results in [Investing & Lending] I&L were largely expected and priced into the stock at this point." I&L swung to a loss of $2.5 billion, from $1 billion of revenue in the second-quarter of 2011.
Wells also notes that trading seemed to have improved, commenting "total Institutional Client Services revenues rose 16% Q/Q to $4.1 billion. Total equities revenues were $2.3 billion, up 22% from Q2 levels as GS benefited from increased client trading activity...We note the lower VaR in Q2 results, which suggests GS was positioned better for the market turbulence encountered in Q3."
Wells continues to rate Goldman an Outperform.
Nomura Securities also issued some comments following Goldman's report, while keeping a Buy rating. Nomura attributes the loss to the decline in global asset prices.
Goldman is nearly 1 percent better on Tuesday's session.
Revenue in the quarter was halved at $3.587 billion, leading to a loss of 84 cents per share. The Street expected revenue of $4.59 billion and a loss of 15 cents per share.
Following the loss, Wells Fargo commented that, "Trading results were in line with our projections, but poor investing and lending performance accounted for the delta versus our estimate. We believe the volatile results in [Investing & Lending] I&L were largely expected and priced into the stock at this point." I&L swung to a loss of $2.5 billion, from $1 billion of revenue in the second-quarter of 2011.
Wells also notes that trading seemed to have improved, commenting "total Institutional Client Services revenues rose 16% Q/Q to $4.1 billion. Total equities revenues were $2.3 billion, up 22% from Q2 levels as GS benefited from increased client trading activity...We note the lower VaR in Q2 results, which suggests GS was positioned better for the market turbulence encountered in Q3."
Wells continues to rate Goldman an Outperform.
Nomura Securities also issued some comments following Goldman's report, while keeping a Buy rating. Nomura attributes the loss to the decline in global asset prices.
Goldman is nearly 1 percent better on Tuesday's session.
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