Meredith Whitney Didn't Slash Goldman Earnings, She's Just Catching Up To Everyone Else

NEWSFLASH! Star banking analyst Meredith Whitney has slashed her estimates on Goldman Sachs.

StreetInsider:

Meredith now sees Goldman reporting Q2 EPS of $1.70, down from her previous estimate of $4.75 and compared to the current Street consensus estimate of $2.34. Q3 EPS estimate moves from $4.24 to $3.77, which compares to the Street estimate of $4.10. For FY10, Meredith is now expecting Goldman to report $15.70, down from $20 previously. The Street is looking for FY10 EPS of $16.76.

Except, this is old.

As PragCap noted this week:

The good thing about the banks is that they don’t provide quarterly guidance when they report earnings.  The bad thing about the banks is that most of them have had dismal quarters as capital markets in general have been atrocious in the most recent quarter.  Fortunately, estimates for the financials have declined dramatically in the last quarter.  For instance, just 2 months ago Goldman Sachs was slated to earn $4.70 in Q2.  Today’s estimate?  $2.40. So, their estimate has been cut almost 50% in just 60 days.  That’s creating a low hurdle for many of the banks.  And as I mentioned above, the best part is that they don’t provide guidance.

So she’s a bit more negative than the street, but given the hard fall in Goldman shares, the important thing, from her perspective, is that she’s just joining the party.

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