GS earnings October 15th

Discussion in 'Stocks' started by S2007S, Oct 9, 2009.

  1. S2007S


    I think you can buy this stock today and sell it next week at $205+.

    Their earnings are going to be


    Goldman Sachs Group, Inc. (NYSE: GS): Third Quarter Earnings Preview 2009
    By: iStockAnalyst Friday, October 09, 2009 9:40 AM

    Goldman Sachs Group (GSStock Charts and Research Links: 188.84, 0.84), Inc is scheduled to report its third quarter financial results on Thursday, October 15.

    Analysts' estimates for the quarter ending September 2009 range from a low of $3.82 to a high of $4.75, with a consensus of $4.237.

    For the fiscal quarter ending September 2009, the consensus EPS forecast has increased over the past week from $4.119 to $4.237 (2.86%) and increased over the past month from $3.579 to $4.237 (18.39%). Of the 23 analysts making quarterly forecasts, 18 raised and none lowered their forecast.

    In the last two quarterly reporting periods, Goldman Sachs (NYSE: GSStock Charts and Research Links: 188.84, 0.84) surprised investors by reporting higher earnings significantly than the market's consensus forecast. The company is likely to surprise investors with market consensus beating earnings. The equity market's recent rebound and steady flow of fixed-income business will likely power the investment banks' third-quarter results. However, earnings will come in slightly below the $4.93-a-share profit the company reported during the second quarter.

    Goldman might benefit from its investment in the Industrial & Commercial Bank of China Ltd., whose shares have gained roughly 20% during the third quarter. Several of the favorable conditions that the company experienced in the second quarter of 2009 extended into the third quarter. The competitive environment in the third quarter remained fragmented and levels of available risk capital remained low. The company also faced fewer write-downs on secured debt as home prices halted their descent. However, the company continues to some face headwinds in the third quarter of 2009. The operating environment for several of its businesses, including M&A advisory and security services remains challenging.

    The company, which repaid $10 billion it received in government bailout funds, will likely set aside about $5 billion to be used toward bonuses - a move that would likely be criticized by lawmakers who have grown frustrated by unreasonable pay packages in the aftermath of the financial crisis.

    Looking at the remainder of 2009 and beyond - the company is seeking to take advantage of an untapped Federal Reserve program, may sell the first commercial-mortgage bond since June 2008, backed by a $400 million loan to an Ohio property owner. The company is likely to receive more than $1 billion if the beleaguered CITStock Charts and Research Links: 1.08, -0.05 Group, Inc. files for Chapter 11 bankruptcy protection.

    For the fiscal year ending December 2009, the consensus EPS forecast has increased over the past week from $17.420 to $17.738 (1.83%) and increased over the past month from $16.089 to $17.738 (10.25%). Of the 23 analysts making yearly forecasts, 19 raised and none lowered their forecast.

    Currently, the stock is trading at $188.17, compared to the 52 week range of $47.41-$192.17. The stock seems to be slightly overvalued valued at the current levels.
  2. S2007S


    Tomorrow morning is the big day, whisper number is for something over $6.00. I said earlier it will not be a problem for them in my opinion, the free money handed to them and all the money they have made using tarp funds etc etc is going to help them out greatly, could easily see a jump over $205 tomorrow.
  3. Hester


    i dont know. You might be right. However, expectations for goldman are high, compared to expectations for nearly every other company are low imo. So they really have to blow the doors out to get a jump in the stock price. Goldman beats 90% of the time and the stock moves on average just 10 basis points.

    Either way, I am on the sidelines.
  4. S2007S


    Just to let you know I am being sarcastic.
  5. joe4422


    Point is everyone already expects them to beat. What if they don't? Missing will be more profitable for the bears, then hitting would be for the bulls.