SEEING RED: Analysts Shred Goldman Earnings Estimates

Jason Voorhees Friday 13

Photo: Wikimedia Commons

Goldman Sachs‘s Q3 EPS could come in at just $0.07 cents per share, according to Atlantic Equities’s Richard Staite.  This compares to the analyst’s prior estimate of $2.96 per share.”About 70% of the cut is due to mark to market losses in the Investing and Lending division, 15% is due to weaker trading revenues in the Institutional Client division and 10% due to weaker Investment Banking income,” said Staite.

More specifically, he thinks Goldman could see $1.6 billion worth of mark to market losses on principal investments. He also sees weakness in credit and FX trading revenue.  Investment banking revenue is expected to plunge 40% from Q2.

Staite cut his price target to $140 from $155 and maintains a neutral rating.

Deutsche Bank’s Michael Carrier also cut his Goldman numbers. He sees the bank delivering 50 cents per share in Q3, down from a previous estimate of $2.75 per share. His new price target is $160, down from $180. Carrier rates Goldman as a buy.

Shares are currently trading at around $103 per share.

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