Dick Bove Slashes Goldman Sachs (GS) Q4 EPS Estimate 66%
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Price: $1,007.87 -1.35%
Rating Summary:
16 Buy, 23 Hold, 2 Sell
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Up: 9 | Down: 12 | New: 19
Rating Summary:
16 Buy, 23 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
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Goldman Sachs (NYSE: GS) is seeing some late-day pressure Tuesday, in part following a drastic call by noted bank analyst Richard "Dick" Bove of Rochdale Securities.
According to a session on Yahoo! Finance's (Nasdaq: YHOO) Breakout, Bove slashed his fourth-quarter earnings estimate by 66 percent to just 79 cents per share. By comparison, the Street is looking for earnings of $2.64 per share.
Mainly citing a slowdown in trading, amongst other things, Bove said, "It just doesn't look like there is enough business out there to allow Goldman to come anywhere close to where Street consensus estimates are for the company." He also alludes to a lack of investment banking activity, a 10 percent to 15 percent dip in M&A activity, and a 15 percent drop in IPOs.
Bove is positive that some high-yield and mortgage-backed sectors will produce strong numbers for the banks.
Finally, Bove says to keep your head on a swivel towards the end of the quarter, as that's when most bank analysts will cut their expectations.
Goldman is trading 3.8 percent negative into the close Tuesday.
According to a session on Yahoo! Finance's (Nasdaq: YHOO) Breakout, Bove slashed his fourth-quarter earnings estimate by 66 percent to just 79 cents per share. By comparison, the Street is looking for earnings of $2.64 per share.
Mainly citing a slowdown in trading, amongst other things, Bove said, "It just doesn't look like there is enough business out there to allow Goldman to come anywhere close to where Street consensus estimates are for the company." He also alludes to a lack of investment banking activity, a 10 percent to 15 percent dip in M&A activity, and a 15 percent drop in IPOs.
Bove is positive that some high-yield and mortgage-backed sectors will produce strong numbers for the banks.
Finally, Bove says to keep your head on a swivel towards the end of the quarter, as that's when most bank analysts will cut their expectations.
Goldman is trading 3.8 percent negative into the close Tuesday.
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