Prepare Thyself: Everyone Expects Goldman To Report Its Second Ever Quarterly Loss Tomorrow

henry paulson at goldman sachs ipo 1999

Photo: AP

After over a month of bearish reports about Goldman Sachs stock, now Bloomberg consensus estimates are officially expecting a loss on shares.That would be Goldman’s second reported loss since it IPO’ed in 1999.

The Bloomberg survey of S&P earnings estimates follows reports by Credit Suisse and Deutsche Bank over the course of the last month.

Consensus is for a $0.11 Q3 loss in share price, down $1.63 over the last four weeks. Analysts are also expecting the financial services giant to report $4.37 billion in revenues for the third quarter, down $2.33 billion in the last four weeks.

This might might explain what we’re hearing about recently revised (and increased) layoff numbers.

On the whole, analysts have expected Goldman to be a casualty of losses across the financial services industry, and have emphasised that they’re not particularly keen on selling shares.

Deutsche Bank’s Michael Carrier wrote last month, “Given significantly lowered expectations & valuations below TBV, we view these as priced in, & once we get some clarity around the Euro issue, we see meaningful upside.” Credit Suisse’s Andrew Chen even pushed the stock as a buy in his own note, writing, “We view GS as a best-in-class brokerage franchise with solid market positioning across myriad businesses and a strong balance sheet…We believe this should sustain premium-to-peer earnings and book value growth over the course of the cycle.”

GS shares closed the day at $96.90.

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