Earnings Preview: Goldman Sachs

| About: Goldman Sachs (GS)

Goldman Sachs (NYSE:GS) is set to report Q2 results before the market open on Tuesday, July 17 with a conference call scheduled to take place at 9:30 am ET.


Analysts' consensus estimate is $1.13 for EPS and $6.28B for revenue. The consensus range is 72c-$1.70 for EPS and $5.14B-$8.24B for revenue, according to First Call.

Analyst Views

On July 11, CLSA banking analyst Mike Mayo lowered his target on Goldman Sachs to $111 from $135, as he believed that the bank had been hurt by lower trading volumes, slowing investment banking activity, and declining global asset levels. Mayo, however, maintained an Outperform rating on the stock. Similarly, on June 28, Citigroup slashed its price target on Goldman to $110 from $145, and reduced its Q2 EPS estimate for the company to 80c from $2.70. Citi contended that Goldman and other large banks had been hurt by economic challenges and regulatory headwinds, but the firm kept a Buy rating on Goldman. Also possibly negative for Goldman is the weak net interest margin environment cited by Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) during their recent Q2 earnings reports. Finally, Citigroup's statement that client activity in equities is still weak may also be a negative sign for Goldman.