Earnings Preview: Goldman Sachs

| About: Goldman Sachs (GS)
This article is now exclusive for PRO subscribers.

Goldman Sachs (NYSE:GS) is slated to report Q4 results on Wednesday, January 18 before the market open, with a conference call scheduled for 9:30 am ET.


Analysts are looking for EPS of $1.24 on revenue of $6.54B. The consensus range is 70c-$2.50 for EPS, and $5.50B-$8.75B for revenue, according to First Call. Investors' expectations for Goldman Sachs' Q4 results may have dropped, after both JP Morgan (NYSE:JPM) and Citigroup (NYSE:C) reported significant year-over-year declines in Q4 trading and investment banking revenues.

Analyst Views

In a note to investors on January 11, Citigroup slashed its Q4 EPS estimate for Goldman to $1.10 from $2.45, partly due to reduced expectations for the company's investing and lending businesses. Wells Fargo also became more pessimistic about Goldman's outlook earlier this month, as the firm downgraded the stock to Market Perform from Outperform, citing "global growth challenges." Goldman is vulnerable to continued macro economic deterioration, explained Wells, which slashed its 2011 EPS estimate for Goldman to $3.67 from $4.37. Finally, 50 partners left Goldman Sachs last year, representing one of the highest amount of partner departures since the firm became a publicly traded company 13 years ago, according to a New York Times report earlier this month.