Three months after predicting Goldman Sachs would put the tumultuous end of 2015 behind it and stabilize profits, analysts are reversing course and cutting projections. Again.
Bloomberg News reports that twenty-two analysts have lopped 94 cents off the average estimate for Goldman Sachs’s adjusted earnings per share over the past four weeks -- the fourth straight quarter they’ve cut figures in the final days, according to data compiled by Bloomberg.
This time, the 11th-hour reduction is among the largest for the firm since the financial crisis, with analysts now predicting its per-share profit will tumble 45% from a year earlier to $3.31 -=- the steepest decline among major U.S. banks.
The sentiment shows a growing realization that Wall Street’s trading and investment-banking machine is sputtering amid broader global uncertainty that marred the start of the year. While firms have said markets improved in March, it wasn’t enough to make up for January and February, when price swings curbed stock and debt sales and curtailed client trades. Big U.S. banks start reporting earnings next week.
“People were holding out hope that March would get better and partially save the quarter,” Glenn Schorr, an analyst at Evercore ISI, said in an interview. “That didn’t happen. There’s no saving this quarter.”
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