Goldman Sachs will report earnings at 7:30 a.m. with a conference call to follow at 9:30 a.m. Analysts expect earnings per share to come in at $US2.45 and a revenue of $US7.2 billion.
If the bank meets expectations, it will be its lowest revenue since Q2 2012 ($6.6 billion). If you remember what was happened in Q2 2012, you’ll remember that the Euro crisis had everyone thinking the world was falling apart.
That $US7.2 billion expected is also $US1.2 billion lower than Q3 2012 — so what gives?
So far, with the exception of Bank of America, all the Wall Street banks that have reported earnings so far this season have gotten spanked — JP Morgan, Citi, Wells Fargo, everyone.
The two businesses that have shown the most weakness for all of them have been mortgage origination and fixed-income trading (if they have both, if not either/or).
For Goldman analysts won’t be worried about mortgage origination — they’ll be looking to see how the bank’s trading desks hold up in the midst of this routing.